API reports a drop in US crude stocks – Trading Economics

US crude oil inventories decreased by 1.9 million bbls in the week ending 21 November, according to estimates from the American Petroleum Institute (API) cited by Trading Economics.

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The decline marked the “first draw after three straight weekly builds in inventories,” according to Trading Economics.

Oil market analysts had expected a larger draw of 2.4 million bbls. “The numbers are largely neutral, with a smaller-than-expected decline in crude inventories,” two analysts from ING Bank noted.

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 4.4 million-bbl build 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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