Crude oil imports into China, one of the largest engines of demand growth, dropped 12 percent in September from last year’s record high and were below 5 million barrels per day for the fourth consecutive month, customs data showed.

Brent and US crude futures briefly pared losses after US government data showed surprisingly large drawdowns in

gasoline and distillate stockpiles. Crude stocks rose more than expected, and traders said overall the report was not enough to overcome the bearish Chinese figures.

By 2:40 p.m. EDT (1840 GMT), ICE Brent crude for November delivery had fallen 17 cents to $111.19 a barrel, after hitting a session low of $109.07. Brent came off earlier lows in early afternoon trading in New York ahead of the November contract’s expiry on Friday.

“There is a squeeze going on ahead of November Brent crude’s expiry,” said Stephen Schork, editor of the Schork

Report in Villanova, Pennsylvania.

In the six previous sessions, Brent gained more than $11, or nearly 12 percent.

US November crude futures settled at $84.23, falling $1.34, after sliding to a session low of $83.17. US crude

fell for a second day, after stemming five days of gains on Wednesday.

Strength in US heating oil, which rose as much as 1.5 percent, also helped crude on both sides of the Atlantic pare

much of their losses in late trading, analysts said.

Brent’s premium against US crude rose above $26, the highest in five weeks, from $25.79 at the close on Wednesday.

Brent’s record premium over US crude, also known as West Texas Intermediate, is $27.23 struck on Sept. 6.

The spread has widened this week, in part due to the decision on Tuesday by the Dow Jones-UBS Commodity Index to add Brent as a component in 2012 and reduce the weighting for US crude.

Further pressure on Brent came after the European Central Bank said forcing private bondholders to accept losses on euro zone sovereign debt could damage the reputation of the euro, hurt the bloc’s banks and encourage volatility on foreign exchange markets.

Concerns about shrinking oil demand, in the wake of Europe’s debt problems and slow growth in the US, again hit the spotlight after the weak Chinese import data.

China’s report followed bleaker demand growth forecasts for this year from the Organization of the Petroleum Exporting Countries and the Paris-based International Energy Agency this week. The US Energy Information Administration separately reported a lower demand forecast for this year, but it raised its estimate for 2012.