API projects a bigger-than-expected decline in US crude stocks – Trading Economics

Crude oil inventories in the US dropped by 2.43 million bbls in the week ended 7 June, according to the American Petroleum Institute (API) estimates cited by Trading Economics.

PHOTO: Oil barrels with the US flag in the background. Getty Images

This week’s API data marked the “fourth weekly draw in crude oil inventories in the last eight weeks,” Trading Economics noted.

Market analysts expected a draw of 1.75 million bbls in the week. A decline in US crude stocks is seen as a positive indicator of oil demand growth and can support oil prices.

“[Brent] crude futures were building… after the American Petroleum Institute late-Tuesday reported much larger than expected weekly declines in US crude and gasoline inventories,” VANDA Insights’ founder and analyst Vandana Hari remarked.

Last week, the US-headquartered body reported a massive decline of 4.05 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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