Oil Inventories Drop by 3.1M Barrels Last Week: API

U.S. crude oil inventories declined more than anticipated last week, signaling a potential improvement in demand, according to a report released by the API.

Following this report, the U.S. benchmark for oil traded at $78.45 per barrel, up from a previous settlement of $78.02 per barrel.

For the week ending May 10, crude oil stockpiles decreased by approximately 3.1 million barrels, contrasting with an increase of 509,000 barrels reported for the previous week. Economists had forecasted a decline of 1.1 million barrels.

Additionally, the API report indicated that gasoline inventories fell by 1.3 million barrels, while distillate stockpiles rose by 349,000 barrels.

Despite this drop in crude reserves, some analysts maintain a bearish outlook for oil prices, citing concerns about increasing non-OPEC supply. A report from Macquarie highlighted that after the second quarter, oil prices may decline due to the growth in NOPEC supply, shrinking OPEC+ capacity, and lower-than-expected demand influenced by ongoing inflation.

A further report on the situation is set to be released on Wednesday.