API reports a drop in US crude inventories – Trading Economics

US crude oil inventories fell by about 4.2 million bbls in the week ending 23 May, according to American Petroleum Institute (API) estimates cited by Trading Economics.

IMAGE: Oil pumpjacks and the US flag in the background. Getty Images

The latest API data surprised markets as analysts expected a 1 million-bbl increase.

A drop in US crude stocks typically indicates higher demand and can lend some support to Brent's price.

“Inventory data from the American Petroleum Institute overnight was fairly constructive,” two analysts from ING Bank noted.

Last week, the US-headquartered energy body reported a 2.5 million-bbl gain in US crude oil inventories in its Weekly Statistical Bulletin, which tracks crude stock changes in the US.

The API data was delayed by a day due to the Liberation Day holiday in the US. The broadly followed US government data on crude stockpiles from the US Energy Information Administration (EIA) is due later today.

By Aparupa Mazumder

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