API projects a massive decline in US crude stocks – Trading Economics

Crude oil inventories in the US declined by a massive 6.49 million bbls in the week ended 24 May, according to the American Petroleum Institute (API) estimates cited by Trading Economics.

PHOTO: An oil pump against the background of the US flag. Getty Images

This week’s API data marked “the biggest weekly draw in crude oil inventories since the last week of December,” Trading Economics noted.

Market analysts expected a decline of 1.9 million bbls in the week. The API reported a “much bigger-than-expected slump,” in US commercial crude stocks for the week, VANDA Insights’ founder and analyst Vandana Hari remarked.

A drop in US crude stocks is often considered a positive indicator of demand growth. This week’s drop in inventories can be attributed to a jump in demand ahead of the Memorial Day holiday over the previous weekend.

Last week, the US-headquartered body reported a rise of 2.48 million bbls in US crude oil inventories in its Weekly Statistical Bulletin that tracks crude stock builds in the US.

The broadly followed US government data on crude oil stockpiles from the US Energy Information Administration (EIA) is due later today.

The weekly API and EIA data were delayed by a day due to the US Memorial Day holiday.

By Aparupa Mazumder 

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