Brent crude oil was lower Thursday morning with supplies plentiful and demand limited, with oil for immediate delivery selling particularly cheap. Physical crude oil prices are weak, said VTB analyst Andrey Kryuchenkov, with North Sea grades selling at a discount to dated Brent, the benchmark.

In the futures market, meanwhile, the nearest month continues to trade at a notable discount to later months–a market condition known as contango.

“We believe Brent prices are well reflective of the current fundamental picture, justified by the comfortable supply-side cushion and weak refining demand in Europe,” Mr. Kryuchenkov said.

The latest data from the U.S. Energy Information Administration showed a 2.1 million barrel draw in crude stocks.

“A crude stock decline was driven by continuing high refinery operations, ” BNP Paribas said in a report. However, crude stocks at the Nymex delivery point of Cushing, Okla., rose for a fourth successive week, by 500,000 barrels.

“Record-setting liquid fuels production growth in the United States has more than offset the growth of unplanned global supply disruptions over the past few years,” the U.S. Energy Information Administration said.

It said U.S. liquid fuels production, including crude oil, grew by more than 4 million barrels a day from January 2011 to July 2014, offsetting supply disruptions of around 2.8 million barrels a day.

Oil markets remain complacent due to this rising supply.

Brent crude oil for October delivery was down 18 cents at $102.54 a barrel on ICE Futures Europe. And October WTI was down 27 cents at $93.61 a barrel on the New York Mercantile Exchange.

ICE gas oil for September changed hands at $866.75 a metric ton, up $2.25. Nymex gasoline was down 37 points at $2.5868 a gallon.