API reports an unexpected drop in US crude stocks – Trading Economics

Crude oil inventories in the US declined by 1.58 million bbls in the week that ended 11 October, according to the American Petroleum Institute (API) estimates cited by Trading Economics.

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

The latest data marked the “sixth draw in the last eight weeks,” Trading Economics noted citing numbers from the API.

Oil market analysts expected an inventory gain of 2.3 million bbls during the week. Brent’s price gained after the API reported an “unexpected decline in US commercial crude inventories,” VANDA Insights’ founder and analyst Vandana Hari remarked.

A drop in US crude stocks indicates growth in oil demand, which can put upward pressure on Brent’s price.

Last week, the US-headquartered energy body reported a massive gain of 10.9 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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