API reports a surprise build in US crude stocks – Trading Economics

Crude oil inventories in the US rose by 1.96 million bbls in the week that ended 13 September, according to the American Petroleum Institute (API) estimates cited by Trading Economics.

PHOTO: An oil pumpjack with the US flag in the background. Getty Images

This week’s data surprised the oil market as it “snapped the third straight week of draws in oil inventories,” Trading Economics noted citing numbers from the API.

A surge in US crude stocks can dampen oil demand growth and put downward pressure on Brent’s price.

Oil market analysts expected a decline of 100,000 bbls during the week.

Brent crude’s price was “edging lower… likely in response to the American Petroleum Institute reporting sizeable builds across US crude and product inventories for the week ended September 13,” VANDA Insights’ founder and analyst Vandana Hari remarked.

Last week, the US-headquartered body reported a slump of 2.8 million bbls in US crude oil inventories in its Weekly Statistical Bulletin that tracks crude stock builds in the US.

The broadly followed US government data on crude oil stockpiles from the US Energy Information Administration (EIA) is due later today.

By Aparupa Mazumder

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