API reports another drop in US crude inventories – Trading Economics

US crude oil inventories declined by 4.28 million bbls in the week ending 20 June, according to estimates from the American Petroleum Institute (API) cited by Trading Economics.

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This week’s data marked the “fourth consecutive weekly decline and the sixth drop in the past eight weeks, signaling tightening supply conditions,” Trading Economics noted.

The decline in crude stocks surprised market analysts, who expected a much smaller draw of 600,000 bbls.

A decrease in US crude stockpiles generally signals stronger demand and can provide some support to Brent's price.

In the previous week, the API reported a massive 10.13 million-bbl drop 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 Aparupa Mazumder

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