API reports a massive build in US crude inventories – Trading Economics

US crude oil inventories rose by 7.1 million bbls in the week ending 4 July, according to estimates from the American Petroleum Institute (API) cited by Trading Economics.

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This week’s build “marked the largest increase in oil stockpiles since February and the second consecutive weekly gain after five straight weeks of draws,” Trading Economics noted.

Market analysts had expected a draw of 2.8 million bbls.

An increase in US crude stockpiles generally signals weaker demand and can dampen Brent's price.

In the previous week, the API reported a 680,000-bbl build 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 Shilpa Sharma

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