Brent crude futures dropped 15 cents, or 0.2%, to $88.21 a barrel at 0508 GMT, while U.S. West Texas Intermediate crude futures lost 9 cents, or 0.1%, to $80.86 a barrel.
"Oil is having a tug-of-war with China COVID demand concerns getting countered with what appears to be a motivated Saudi Arabia to keep the oil market tight," said Edward Moya, senior market analyst with OANDA, in a note. Analysts polled by Reuters on average had expected a 1.1 million barrel drawdown in crude inventories.
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