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The Emirates News Agency reported modest losses across oil benchmarks on Thursday as participants balanced several cross currents in the physical and futures markets. Brent crude futures closed the session at $95.20 a barrel while the West Texas Intermediate contract moved in tandem with a similar fractional decline. Market sentiment remained sensitive to upcoming releases of manufacturing and consumption data from the United States and China.
U.S. Energy Information Administration figures show commercial crude inventories fell 4.5 million barrels in the week ended Aug. 28, exceeding the 300,000-barrel draw anticipated by analysts. The larger-than-expected decline left stocks at 424.5 million barrels, roughly 1 percent above the five-year seasonal average. Refineries operated near full capacity, supporting product output even as raw material stocks tightened.[[1]](https://www.wsj.com/business/energy-oil/u-s-crude-oil-stockpiles-see-larger-than-expected-drop-ed60334e)
An International Energy Agency assessment found that global oil demand growth continues to decelerate, with first-half 2024 gains of 800,000 barrels per day representing the weakest performance since 2020. The slowdown is driven primarily by China, where consumption contracted for a fourth consecutive month in July. Annual demand is projected to average 900,000 barrels per day higher in 2024, lifting total consumption to nearly 103 million barrels per day.[[2]](https://www.iea.org/reports/oil-market-report-september-2024)
OPEC+ producers have maintained output discipline, postponing the scheduled unwinding of voluntary production cuts to monitor demand developments more closely. Non-OPEC supply, led by producers in the Americas, is still expected to expand by 1.5 million barrels per day this year and next. The resulting supply cushion has limited the upside for prices despite persistent geopolitical risks in the Middle East.
Analysts tracking the market noted that speculative positioning has shifted toward net short holdings in Brent futures, reflecting caution over the demand outlook. Open interest data indicated active repositioning ahead of further economic releases. The settlement level of $95.20 for Brent underscored the narrow range in which the contract has traded in recent weeks.
Further direction for crude prices will hinge on incoming indicators of industrial activity and consumer spending in key consuming nations. The Emirates News Agency highlighted that the phrase “Oil edges down; Brent at $95.20 pb” captured the prevailing tone across trading floors on Thursday. Additional weekly petroleum data due in the coming days is expected to clarify whether the inventory draw represents a sustained trend or a temporary fluctuation.
