API projects a decline in US crude stocks – Trading Economics

Crude oil inventories in the US declined by 1.9 million bbls in the week that ended 5 July, according to the American Petroleum Institute (API) estimates cited by Trading Economics.

PHOTO: Oil barrels painted with the flag of the US. Getty Images

This drop marked the “second consecutive weekly draw” estimated by the API, Trading Economics noted.

Oil market analysts expected a smaller draw of 250,000 bbls in the week.

This week’s data was “moderately bullish,” VANDA Insights’ founder and analyst Vandana Hari said.

A decline in US crude stocks is considered a positive indicator of oil demand growth and could push oil prices higher.

Last week, the US-headquartered body reported a massive draw of 9.16 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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