API reports a draw in US crude stocks – Trading Economics

US crude oil inventories fell by 399,000 bbls in the week ending 3 July, according to estimates from the American Petroleum Institute (API) cited by Trading Economics.

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“Commercial crude inventories, excluding the SPR [Strategic Petroleum Reserve], have declined by nearly 60 million barrels over the past 12 weeks but remain only 8.6 million barrels lower year-to-date,” Trading Economics reported.

A decline in US crude inventories is generally viewed as an indication of stronger oil demand and can lend upward support to Brent's price.

The latest draw comes after US crude inventories dropped by 6.1 million bbls in the previous week, according to the API’s Weekly Statistical Bulletin, which monitors changes in US domestic crude supplies.

The market is now awaiting official inventory data from the US Energy Information Administration (EIA), which is due to be released later today.

By Tuhin Roy

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