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Crude oil prices edged lower on Thursday on concerns about outlook for near-term energy demand due to slowing global economy.

However, the recent data that showed a drop in U.S. crude stockpiles, and simmering tensions between the U.S. and Iran limited oil's losses.

The Iranian President Hassan Rouhani said in a speech in Teheran during the unveiling of the Bavar-373, that talks are useless when enemies do not accept logic.

Iran's state TV reported that the Bavar-373 is able to recognize up to 100 targets at a same time and confront then with six different weapons.

West Texas Intermediate crude oil futures for October ended down $0.33, or 0.6%, at $55.35 a barrel.

Brent crude futures were down by about $0.40 at $59.90 a barrel around mid afternoon.

On Wednesday, WTI Crude oil futures for October ended down $0.45, or about 0.8%, at $55.68 a barrel.

Data released by Energy Information Administration on Wednesday showed U.S. crude stockpiles dropped by 2.7 million barrels in the week ended August 16, after registering increases in the previous two weeks.

Gasoline inventories were up 300,000 barrels last week, while distillate stockpiles increased by 2.6 million barrels.

Traders now await the speech of the U.S. Federal Reserve Chairman Jerome Powell at the Jackson Hole symposium on Friday, for clues an future interest rates.

Traders continued to weigh the likely impact of the ongoing U.S.-China trade dispute on the global economy as well as energy demand outlook.