API reports drop in US crude stocks – Trading Economics

US crude oil inventories decreased by 4.93 million bbls in the week ending 16 October, according to estimates from the American Petroleum Institute (API), as cited by Trading Economics.

IMAGE: Crude oil pump jacks. Getty Images

The latest inventory decline was “well above market expectations for a 1.3 million-barrel draw,” Trading Economics noted.

The latest draw follows an 11.12 million-bbl decline in 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 market is now awaiting official inventory data from the US Energy Information Administration (EIA), which is due to be released later today.

By Shilpa Sharma

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