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

US crude oil inventories decreased by a whopping 9.3 million bbls in the week ending 12 December, according to American Petroleum Institute (API) estimates cited by Trading Economics.

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The drop in US crude inventories marked the fourth straight weekly decline, according to data cited by Trading Economics.

A drop in US crude stocks usually signals stronger demand and can offer some support to Brent’s price.

“American Petroleum Institute (API) inventory numbers released overnight were also supportive of the [oil] market,” two analysts from ING Bank noted.

Last week, the API reported a 4.8 million-bbl draw in its Weekly Statistical Bulletin, which tracks changes in domestic crude supplies.

The official figures from the US Energy Information Administration (EIA) are due later today.

By Aparupa Mazumder

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