API reports a surprise gain in US crude inventories – Trading Economics

US crude oil inventories rose by 4.3 million bbls in the week ending 9 May, according to American Petroleum Institute (API) estimates cited by Trading Economics.

IMAGE: Oil barrels. Getty Images

The latest API data surprised markets as analysts expected a draw of 2.4 million bbls.

This week’s data marked the largest build in six weeks, Trading Economics noted.

A buildup in inventories typically signals weaker oil demand, which can put downward pressure on Brent's price.

The API data “showing a jump in US crude inventories in the week to May 9 was also spurring some profit-taking selling,” VANDA Insights’ founder and analyst Vandana Hari remarked.

Last week, the US-headquartered energy body reported a 4.5 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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