US oil inventories fall 4.2M barrels last week: API

Oil tanks

US oil inventories declined last week, indicating increased energy demand in the world's largest economy, the American Petroleum Institute (API) said in a report released on Aug. 5.

Commercial crude oil inventories fell by 4.2 million barrels in the week ended Aug. 1, compared to expectations for a decline by 1.8 million barrels.

The API noted a decline in gasoline inventories of 900,000 barrels during the same period, but distillate inventories—which include diesel and heating oil—rose by 1.6 million barrels.

Investors are awaiting the release of official inventory data from the Energy Information Administration today, Aug. 6. Crude oil inventories are expected to rise by 200,000 barrels, following a 7.7 million barrel increase the previous week.

Meanwhile, Brent crude futures for October delivery fell 1.63%, or $1.12, to close the Aug. 5 session on $67.64 a barrel.

WTI crude futures for September delivery fell 1.70%, or $1.13, to $65.16 a barrel.