Oil near six-and-a-half-year lows as China economy fears linger
Crude oil futures dipped on August 26 on fears of a hard landing for China's economy despite central bank moves to bolster stumbling growth and concerns about a supply glut.
US stock futures resumed their descent in early Asian trade and Asian shares were seen on the defensive on August 26 as monetary easing by China's central bank had limited success in cheering up nervous investors.
Brent lost 10 cents to US$43.11 a barrel as of 0110 GMT after it settled up 52 cents at US$43.21 a barrel in the previous session.
US October crude fell 20 cents to US$39.11 a barrel, after finishing the previous session US$1.07 higher at US$39.31.
ANZ said in a note that China's rate cuts had calmed commodity markets, but they remained cautious and gains would be limited.
"The displacement of high cost supply from the United States is taking much longer than expected, and it's likely to keep the market substantially oversupplied in the short term," the bank said.
US crude stocks fell by 7.3 million barrels in the week to August 21 to 449.3 million, compared with analysts' expectations for an increase of 1 million barrels as refinery runs increased, data from industry group the American Petroleum Institute showed on August 25.
Official inventory data from the US Energy Information Administration is due on August 26.