API reports a drop in US crude inventories – Trading Economics

US crude oil inventories declined by 4.2 million bbls in the week ending 1 August, according to estimates from the American Petroleum Institute (API) cited by Trading Economics.

IMAGE: The US flag and barrels of oil. Getty Images

The draw in crude stocks “exceeded market expectations,” Trading Economics noted.

Market analysts had expected a smaller draw of about 1.8 million-bbl in the week.

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

“The American Petroleum Institute’s latest US stocks report was moderately bullish,” said VANDA Insights’ founder Vandana Hari.

In the previous week, the API reported a 1.54 million-bbl rise in US crude inventories in its Weekly Statistical Bulletin, which monitors changes in domestic crude stocks.

The widely watched official data from the US Energy Information Administration (EIA) is scheduled for release later today.

By Aparupa Mazumder

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