API reports a big drop in US crude stocks – Trading Economics

US crude oil inventories dropped by a larger-than-expected 6.8 million bbls in the week ending 29 May, according to estimates from the American Petroleum Institute (API) cited by Trading Economics.

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The draw exceeded market expectations of a 3.6 million-bbl decline.

A decline in US crude stocks could indicate improved demand for oil and can put some upward pressure on Brent's price.

“The latest figure also marked the seventh consecutive weekly decline and followed a 2.8 million-barrel draw in the previous week,” Trading Economics noted.

Official inventory data from the US Energy Information Administration (EIA) is scheduled to be released later today.

By Tuhin Roy

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