API projects a sharp rise in US crude stocks – Trading Economics

Crude oil inventories in the US gained 4.05 million bbls in the week ended 31 May, according to the American Petroleum Institute (API) estimates cited by Trading Economics.

PHOTO: An oil pump jack with the US dollar in the background. Getty Images

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

Market analysts expected a rise of 1.9 million bbls in the week.

API's latest data was “bearish, showing sizeable builds in US crude and gasoline stockpiles for the week ended May 31,” VANDA Insights’ founder and analyst Vandana Hari remarked.

A jump in US crude stocks is seen as a negative indicator of oil demand growth.

Last week, the US-headquartered body reported a massive decline of 6.49 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.

By Aparupa Mazumder 

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