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

Crude oil inventories in the US increased by 5.02 million bbls in the week that ended 31 January, according to the American Petroleum Institute (API) estimates cited by Trading Economics.

PHOTO: Oil barrels and the US flag. Getty Images

The latest data marked the third consecutive week of inventory gains, “after five weeks of declines,” Trading Economics noted.

Market participants were expecting a smaller build of about 3.17 million bbls in the week. “The American Petroleum Institute’s latest weekly US stocks data was bearish on balance,” VANDA Insights’ founder and analyst Vandana Hari wrote.

A surge in US crude stocks can indicate a drop in oil demand, which can cap Brent's price rise.

Last week, the API reported an increase of 2.9 million bbls in US crude oil inventories in its Weekly Statistical Bulletin, which tracks crude stock builds.

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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