API reports a decline in US crude stocks – Trading Economics

Crude oil inventories in the US dropped by 4.0 million bbls in the week that ended 3 January, according to the American Petroleum Institute (API) estimates cited by Trading Economics.

PHOTO: An oil pumpjack with the US flag in the background. Getty Images

The latest data marked the fourth consecutive week of decline and the “seventh draw in the last twelve weeks,” Trading Economics noted citing numbers from the API.

The weekly inventory decline exceeded market expectations of a 250,000-bbl draw during the week.

A drop in US crude stocks indicates a growth in oil demand, which can support Brent's price.

“Strength in the [oil] market continued in early morning trading today after API numbers showed that US crude oil inventories fell by 4m barrels [4 million bbls] over the last week,” two analysts from ING Bank said.

Last week, the API reported a draw of 1.44 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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