Oil Inventories Unexpectedly Drop by 2.4M Barrels Last Week: API

By Yasin Ebrahim

U.S. crude oil inventories saw an unexpected decrease last week, according to a report from the API. This comes amidst significant fluctuations in oil prices, which have been influenced by easing supply concerns related to potential changes in U.S. policy regarding major oil company operations in Venezuela.

Following the report, the U.S. benchmark crude traded at $110.52 per barrel, after settling down 1.6% at $112.40 per barrel.

For the week ending May 12, crude oil inventories fell by 2.4 million barrels, contrasting with a build of 1.6 million barrels from the previous week. Economists had anticipated an increase of about 1.5 million barrels.

Additionally, the API data indicated a decline in gasoline inventories of 5.1 million barrels last week, while distillate stocks rose by approximately 1.1 million barrels.

The official government inventory report, which is expected to be released Wednesday, is projected to show that U.S. crude oil inventories rose by around 1.4 million barrels last week.