API reports a drop in US crude stocks – Trading Economics

US commercial crude inventories declined by 3.23 million bbls in the week ended 19 April, according to the American Petroleum Institute (API) data cited by Trading Economics.

PHOTO: An oil pumpjack with the US flag in the background. Getty Images

Oil market analysts were expecting a build of around 1.8 million bbls in the week.

A decline in US crude stocks indicates that demand for oil is improving in the world’s top oil-consuming nation. This could support Brent futures.

Last week, the US-headquartered body reported a rise of 4.1 million bbls in US crude oil inventories in its Weekly Statistical Bulletin that tracks crude stock builds in the US. The US Energy Information Administration's (EIA) official data that came out later that day showed a rise of 2.74 million bbls in crude stocks to 459.99 million bbls during the same time – its highest level since June last year.

The broadly followed US government data on crude oil stockpiles from the EIA is due later today.

“The API crude inventories declined by 3.2 million barrels last week and focus will be on the EIA numbers,” said Saxo Bank’s head of FX strategy Charu Chanana.

By Aparupa Mazumder 

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