API reports a huge decline in US crude stocks – Trading Economics

US crude oil inventories fell by a sharp 11.1 million bbls in the week ending 30 January, according to American Petroleum Institute (API) estimates cited by Trading Economics.

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This followed “a 0.25 million-barrel draw in the prior week,” the data showed.

“The decrease sharply contrasted with expectations for a 0.7 million barrel build to mark the sharpest decline since August 2023,” Trading Economics noted.

A fall in US crude stocks is typically read as a sign of stronger demand and can lend support to Brent prices.

“The oil market got another boost from a bullish inventory report from the American Petroleum Institute (API),” two analysts from ING Bank said.

In the previous week, the API had reported a smaller 250,000-bbl draw in its Weekly Statistical Bulletin, which tracks changes in domestic crude supplies.

The official inventory figures from the US Energy Information Administration (EIA) are scheduled for release later today.

By Tuhin Roy

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