API reports another rise in US crude inventories – Trading Economics

US crude oil inventories rose by about 2.5 million bbls in the week ending 16 May, according to American Petroleum Institute (API) estimates cited by Trading Economics.

IMAGE: Oil barrels with the US flag in the background. Getty Images

The latest API data surprised markets as analysts expected a draw of 1.9 million bbls. “The surprise build caught markets off guard,” Trading Economics noted.

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

Last week, the US-headquartered energy body reported a 4.3 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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