Oil prices have eased as concerns over weak demand in China, the world’s largest crude importer, and expectations of a nearing ceasefire deal in the Middle East overcame gains in the previous session after draws in US inventories, Reuters reports.

Brent crude futures for September fell 59 cents, or 0.7 per cent, to $81.12 a barrel by 6:30am GMT. US West Texas Intermediate crude for September slid 61 cents, or 0.8pc, to $76.98 per barrel.

US gasoline stocks dropped by 5.6m barrels, compared with analysts’ expectations for a 400,000 draw. Distillate stockpiles fell by 2.8m barrels versus expectations for a 250,000-barrel increase, the EIA data showed.

“Despite draws in US crude and gasoline stocks, investors remained wary about weakening demand in China and expectations of advancing ceasefire talks between Israel and Hamas added to pressure,” said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.

“If Middle East ceasefire talks progress, US equities continue to slide, and China’s economy remains sluggish, oil prices could fall to early June levels,” said Satoru Yoshida, a commodity analyst with Rakuten Securities.