API projects another drop in US crude stocks – Trading Economics

Crude oil inventories in the US declined by 4.44 million bbls in the week that ended 12 July, according to the American Petroleum Institute (API) estimates cited by Trading Economics.

PHOTO: Oil barrels and a pump jack with the US flag in the background. Getty Images

“Oil inventories dropped for the third straight week and marked the fourth weekly draw in the last six weeks,” Trading Economics noted.

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

Last week, the US-headquartered body reported a small draw of 1.9 million bbls in US crude oil inventories in its Weekly Statistical Bulletin that tracks crude stock builds in the US.

This week’s API data was “neutral to bearish, but market participants are likely to wait for the official data from the Energy Information Administration later today,” VANDA Insights’ founder and analyst Vandana Hari said.

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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