API reports a massive drop in US crude stocks – Trading Economics

US crude oil inventories decreased by 11.12 million bbls in the week ending 9 October, according to estimates from the American Petroleum Institute (API), as cited by Trading Economics.

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The latest inventory report marks the “largest draw since late January,” according to the data. Market analysts had projected a 1.9 million-bbl increase instead, Trading Economics noted.

“US crude oil production rose to 13.98 million barrels per day [13.98 million b/d] in the week ending October 2nd, up from 13.95 million bpd [13.95 million b/d] a week earlier,” Trading Economics reported citing the API data.

The latest draw follows a 2.09 million-bbl decline in the US crude inventories in the previous week, according to the API’s Weekly Statistical Bulletin, which monitors changes in US domestic crude supplies.

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

The API data was delayed by a day due to US Columbus Day Holiday. The market is now awaiting official inventory data from the US Energy Information Administration (EIA), which is due to be released later today.

By Aparupa Mazumder

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