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

US crude oil inventories plunged by 9.1 million bbls in the week ending 5 June, according to estimates from the American Petroleum Institute (API) cited by Trading Economics.

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The draw exceeded market expectations of a 3.4 million-bbl decline.

A decline in US crude stocks could indicate improved demand for oil and can put some upward pressure on Brent's price.

“The Strategic Petroleum Reserve also continued to shrink, with another 7.9 million barrels withdrawn during the week,” Trading Economics noted.

In the previous week, the API reported a 6.7 million-bbl decrease in its Weekly Statistical Bulletin, which tracks changes in domestic crude supplies.

Official inventory data from the US Energy Information Administration (EIA) is scheduled to be released later today.

By Aparupa Mazumder

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