Brent Crude for March delivery fell 27 cents, or 0.48%, to $55.54 per barrel. WTI Crude settled 51 cents, or 0.96%, lower at $52.34 per barrel. The premium of the Brent front-month over the second month rose to its highest level since February 2020 for a fourth day in a row. The U.S. 3-2-1 crack spread , a measure of the profit margin for refining crude into gasoline and distillate, was on track for its highest close since May 2020, while the gasoline crack spread was on track for its highest close since June 2020.

Oil prices were supported earlier by Wednesday’s data that showed a huge 10 million-barrel drawdown in U.S. crude inventories last week, which analysts said was because of a pickup in U.S. crude exports and a drop in imports. “The draw was a big relief for inventories, especially as it followed a week of builds, putting traders at ease that supply doesn’t overwhelm demand for the time being,” Rystad Energy’s Louise Dickson said.

In addition, the U.S. dollar index flipped into negative territory after earlier gains, which also helped support oil prices. Buyers using other currencies pay less for dollar-priced oil when the greenback falls. Demand concerns, however, weighed on sentiment and prevented oil prices from holding those earlier gains.

The U.S. economy contracted at its deepest pace since World War Two in 2020 as the COVID-19 pandemic depressed consumer spending and business investment, pushing millions of Americans out of work and into poverty. A separate report showed 847,000 more people likely filed U.S. jobless claims last week, strengthening views of persistent labor market weakness. Stricter vaccine checks by the European Union and delivery hold-ups from AstraZeneca Plc and Pfizer Inc have slowed the roll out of shots. In China, the world’s second-largest oil consumer, a surge in coronavirus cases has led to travel restrictions ahead of the Lunar New Year, normally the busiest travel season of the year.