Oil prices remain near multi-month lows due to continuing oversupply concerns despite a larger drawdown of US inventory.

US crude fell 17 cents at $44.96 a barrel, and Brent crude futures increased 9 cents at $49.68 a barrel, Reuters reported.

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US gasoline inventories edged up despite a fall in crude stocks last week, which is more than expected.

"US crude fell 17 cents at $44.96 a barrel."

Some refineries in the US are operating at record high rates to take advantage of refining margins that are strong.

Commerzbank oil analyst Carsten Fritsch told the news agency: "If they continue to run at these levels then we will see massive builds in distillates and gasoline stocks when the peak demand season is over for gasoline."

Falling margins are prompting refiners to cut runs or head into seasonal maintenance which is expected to fresh build up in US inventories.

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Brent, Forties, Oseberg and Ekofisk crudes, which decide Brent benchmark are expected to produce one million barrels a day during September, adding pressure on oil.