API reports a drop in US crude inventories – Trading Economics

US crude oil inventories declined by 4.5 million bbls in the week ending 2 May, according to American Petroleum Institute (API) estimates cited by Trading Economics.

IMAGE: Oil pumpjacks at dusk. Getty Images

Market analysts expected a much smaller draw of 2.5 million bbls. This week’s data “significantly surpassed market expectations,” Trading Economics noted.

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

“American Petroleum Institute numbers, released overnight, were fairly constructive,” two analysts from ING Bank noted.

Last week, the US-headquartered energy body reported a 3.8 million-bbl gain in US crude oil inventories in its Weekly Statistical Bulletin, which tracks crude stock changes in the US.

The broadly followed US government data on crude stockpiles from the US Energy Information Administration (EIA) is due later today.

By Aparupa Mazumder

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