API reports a drop in US crude stocks – Trading Economics

Crude oil inventories in the US dropped by 4.7 million bbls in the week that ended 13 December, according to the American Petroleum Institute (API) estimates cited by Trading Economics.

PHOTO: An oil pump against the background of the US flag. Getty Images

The latest data marked the “fourth week of draw in the last eight weeks,” Trading Economics noted citing numbers from the API.

The weekly inventory decline exceeded market expectations of a 1.85 million-bbl draw during the week.

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

“The American Petroleum Institute reporting a larger-than-expected slump of 4.7 million barrels in US commercial crude stockpiles for the week ended December 13 prompted some bargain-hunting buying… as the market will await confirmation from the official Energy Information Administration data later today,” VANDA Insights’ founder and analyst Vandana Hari said.

Last week, the API reported a rise of 499,000 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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