U.S. crude dropped 87 cents to $94.80 a barrel by 1030 GMT, after falling 66 cents a day earlier. London Brent crude shed 67 cents to $93.70.

“The flip side of the U.S. crude draw was equally striking product builds,” said Antoine Halff of Newedge Group. “Scratch the surface, and the headlines look less price supportive.”

Supplies of gasoline in the United States jumped 5.3 million barrels and distillates rose 1.5 million barrels last week, far exceeding analyst expectations.

Muting the bearish impact of the data, the U.S. Energy Information Administration said crude inventories tumbled 6.8 million barrels to the lowest level since October 2004.

Oil is below last week’s lifetime high of $100.09 a barrel, pressured partly by concerns that a U.S. economic slowdown will erode energy demand.

Investment bank Goldman Sachs said on Wednesday it expected the world’s biggest economy to tip into recession this year.

The Organization of the Petroleum Exporting Countries, which supplies more than a third of the world’s oil, is keeping a close watch on the economy.

OPEC President Chakib Khelil said on Thursday he expected demand and prices to be affected if the malaise reached global proportions.

“We are closely following with interest the evolution of this crisis which could, if it comes to affect Europe and the rest of the world, bring about a decline in the development of the world economy,” Khelil said.

Price losses were limited by rising geopolitical tensions in OPEC producers Iran and Nigeria.

U.S. President George W. Bush warned of “serious consequences” after Iranian boats made aggressive manoeuvres towards three American naval ships in the Strait of Hormuz, a major oil shipping route.

Iran accused Washington of trying to stir tension.

In Nigeria, unknown gunmen attacked six oil ships in the channel leading to the country’s largest oil and gas complex on Bonny Island.

A day earlier militants said they were targetting a major offensive at its oil infrastructure.