US crude stocks fall 4.5M bbl but fuel demand weakens, oil prices drop

EIA reported a 4.5 million barrel draw in US crude inventories for the week ending August 28, larger than the API's 2.6 million barrel estimate, bringing stocks to 424.5 million barrels, 1% above the five-year average. Despite the draw, oil prices fell on signs of weakening fuel demand, suggesting the market is more focused on demand-side concerns than supply tightness. The divergence between inventory draw and price action indicates potential demand softness that could pressure crude prices in the near term.