- American Petroleum Institute reported crude oil inventories fell 12 million barrels
- Analysts expected an increase in crude inventories based on recent weather trends
- API inventory report shows largest decrease since 12.4mb reported on March 2013
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US crude oil prices spiked higher by 1.5 percent following the release of inventory data from the American Petroleum Institute. The data showed a 12 million barrel decrease in US crude oil supplies for the week of August 28. This appears to be the largest drawdown in crude inventories since the 12.4 million barrel drop reported in March 2013. According to the financial news site Marketwatch the data seems to have “contradicted expectations for an increase of 425,000 barrels from analysts polled by S&P Global Platts”. Marketwatch also suggested the analysts were citing recent weather disruptions for the expected increase in inventories.
The data released by the API may have impacted prices as it sheds light on the condition of the current oil supply glut. An increase in inventories would have signaled continued excess supply. However, the significant drawdown showed that excess supply had fallen, which is generally bullish for prices. Tomorrow the Energy Information Administration will release its US crude inventory data for the previous week at 15:00 GMT.
(Chart made with Marketscope 2.0)