API reports a slump in US crude inventories – Trading Economics

US crude oil inventories fell by 4.6 million bbls in the week ending 21 March, according to American Petroleum Institute (API) estimates cited by Trading Economics.

CONCEPT: The US flag painted on two oil drum barrels. Getty Images

The decline in crude stocks “came after two consecutive weeks of inventory builds,” according to Trading Economics.

The reported drop in US crude inventories exceeded market expectations of a 2.5 million-bbl decrease. A decline in crude oil stocks typically signals strong oil demand, which can put upward pressure on Brent’s price.

“[Brent] crude futures were edging higher… after data showed larger-than-expected drawdowns in US commercial crude as well as oil product inventories last week,” VANDA Insights’ founder and analyst Vandana Hari noted.

Last week, the US-headquartered energy body reported a 4.6 million-bbl rise 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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