API projects a big drop in US crude stocks – Trading Economics

Crude oil inventories in the US declined by about 7.4 million bbls in the week that ended 30 August, according to the American Petroleum Institute (API) estimates cited by Trading Economics.

PHOTO: An oil pump against the background of the US flag. Getty Images

This week’s data “marked the eighth draw in the last ten weeks,” Trading Economics noted citing numbers from the API.

A drop in US crude stocks can support oil demand growth and put upward pressure on Brent’s price.

Oil market analysts expected a much smaller drop of 900,000 bbls during the week. “API numbers released overnight were constructive,” two analysts from ING Bank said.

Last week, the US-headquartered body reported a slump of 3.4 million bbls in US crude oil inventories in its Weekly Statistical Bulletin that tracks crude stock builds in the US.

The broadly followed US government data on crude oil stockpiles from the US Energy Information Administration (EIA) is due later today.

By Aparupa Mazumder

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