API projects more decline in US crude stocks – Trading Economics

Crude oil inventories in the US dropped by 3.9 million bbls in the week that ended 19 July, 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 data marked the “fourth straight week of fall in crude oil inventories,” Trading Economics noted.

A draw in US crude stocks is considered a positive indicator of oil demand growth and could push oil prices higher. Market analysts expected a 2.47 million-bbl draw in the week.

“[Brent] crude futures were inching higher… in response to the American Petroleum Institute reporting sizeable across-the-board oil inventory draws in the US for last week,” VANDA Insights’ founder and analyst Vandana Hari said.

Last week, the US-headquartered body reported a decline of 4.44 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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