API reports a decline in US crude inventories – Trading Economics

US crude oil inventories dropped by 3.42 million bbls in the week ending 12 September, according to estimates from the American Petroleum Institute (API) cited by Trading Economics.

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The decline has “exceeded market expectations,” as market analysts had projected a smaller draw of 1.6 million bbls, according to Trading Economics.

The API data “was bullish,” remarked VANDA Insights’ founder Vandana Hari.

A drop in US crude stocks typically indicates higher demand and can lend some support to Brent's price.

Last week, the API reported a 1.25 million-bbl rise in US crude inventories in its Weekly Statistical Bulletin, which monitors changes in domestic crude stocks.

The widely watched official data from the US Energy Information Administration (EIA) is scheduled for release later today.

By Aparupa Mazumder

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