LONDON, July 31: Oil retreated on Thursday after an early bounce, pressured by bearish data on the economy in top energy consumer the United States.

US light crude for September was down $2.32 at $124.45 a barrel by 1408 GMT, after a jump of $4.58 on Wednesday.

London Brent crude was $2.95 down at $124.15 a barrel.

Oil has tended to rise when the dollar falls and vice versa, but this pattern has shown signs of breaking down recently.

US gross domestic product grew at a 1.9 per cent annual rate in the second quarter, lower than expected, which added to concerns over the health of the US economy.

Oil had rallied strongly on Wednesday after a surprise fall in gasoline stocks last week in the United States. This followed a fall of about 18 per cent from the market’s record peak above $147 on July 11, partly due to concerns over demand erosion, especially in the United States.

Oil’s six-year advance has been driven partly by strong demand growth from China, India and the Middle East that could tighten the market’s supply/demand balance over the long term.—Reuters