API projects another draw in US crude stocks – Trading Economics

Crude oil inventories in the US declined by 4.5 million bbls in the week that ended 26 July, according to the American Petroleum Institute (API) estimates cited by Trading Economics.

PHOTO: An oil refinery complex with the US flag. Getty Images

This week’s data marks the fifth consecutive week of decline in US crude oil inventories and “represents the largest decline of the month,” Trading Economics noted.

A draw in US crude stocks is considered a positive indicator of oil demand growth and could push oil prices higher.

“[Brent] crude futures were bouncing off Tuesday’s eight-week-low settlements early Wednesday in Asia, in response to American Petroleum Institute data showing sizeable and bigger than expected weekly drawdowns in US crude and gasoline inventories,” VANDA Insights’ founder and analyst Vandana Hari said.

Last week, the US-headquartered body reported a decline of 3.9 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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