Oil Prices Drop Over 2.5% on Demand Worries Despite Large US Inventory Draw

Oil prices fell over 2.5% on Thursday amid worries that strong US economic growth will keep interest rates high.

Oil traders sold crude on speculation that the Israel-Hamas conflict may not escalate further.

Prices dropped despite a larger-than-expected draw on US crude inventories last week.

Analysts say oil markets have discounted the Israel-Hamas tensions due to ample global spare capacity.

Crude prices hit 2023 highs in late September but have declined recently on demand concerns.