API reports a huge decline in US crude stocks – Trading Economics

US crude oil inventories recorded a substantial draw of 8.33 million bbls in the week ending 12 June, according to estimates from the American Petroleum Institute (API) cited by Trading Economics.

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The decline exceeded market expectations, which had pointed to a 4.5 million-barrel draw.

A sharp fall in US crude stockpiles is generally seen as a sign of stronger oil demand and can provide upward support to Brent crude prices.

“Inventories in the SPR [Strategic Petroleum Reserve] also continued to decline, dropping by 8.9 million barrels to 340.3 million, leaving stocks 385 million barrels below maximum capacity,” Trading Economics said.

The latest draw follows the API’s reported 9.1 million-barrel decline in crude inventories the previous week, as outlined in its Weekly Statistical Bulletin, which tracks changes in US domestic crude supplies.

Market participants are now awaiting official inventory figures from the US Energy Information Administration (EIA), which are scheduled for release later today.

By Tuhin Roy

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