By Sam Li and Siyi Liu

(Reuters) -Oil prices fell on Thursday as investors weighed the outlook for U.S. fuel demand with the end of the summer driving season near, while assessing potential crude supply shifts as India faces punishing U.S. tariffs for importing Russian oil.

Brent crude futures dropped 31 cents, or 0.46%, to $67.74 at 0027 GMT, and West Texas Intermediate (WTI) crude futures dropped 36 cents, or 0.56%, to $63.79, after climbing more than 1% in the previous session.

The U.S. Energy Information Administration reported on Wednesday that U.S. crude inventories fell by 2.4 million barrels in the week ended August 22, compared with analysts’ expectations in a Reuters poll for a 1.9-million-barrel draw.

The drop signalled strong demand ahead of the upcoming U.S. Labor Day long

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