API projects a drop in US crude stocks – Trading Economics

Crude oil inventories in the US declined by about 5.2 million bbls in the week that ended 9 August, according to the American Petroleum Institute (API) estimates cited by Trading Economics.

PHOTO: A silhouette of an oil drilling pump on the background of the US flag. Getty Images

This week’s decline “comes as inventories fell for the seventh time in the last eight weeks,” Trading Economics noted.  

Oil market analysts expected a build of 2 million bbls for the week ending 9 August. A drop in US crude stocks can support demand growth and higher oil prices.

“Oil inventories matter when the risks to supply are high as we head into a world of a supply deficit,” Price Futures Group’s senior market analyst Phil Flynn remarked.

Last week, the US-headquartered body reported a rise of 180,000 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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