API reports 3M bbl drop in US crude inventories

Oil tanks

US crude oil inventories fell in the week ended Oct. 17, according to estimates from the American Petroleum Institute (API), indicating stronger energy demand in the world’s largest economy.

The institute said in a report released on Oct. 21 that commercial crude inventories declined by 2.98 million barrels last week.

Gasoline stockpiles also fell by 236,000 barrels during the same period, while distillate inventories — including diesel and heating oil — decreased by 974,000 barrels.

Investors await official data from the Energy Information Administration (EIA) on Oct. 22, with expectations of a 2.2 million-barrel increase in crude inventories.

At Oct. 21 close, Brent crude for December delivery rose 0.51%, or $0.31, to $61.32 per barrel. Meanwhile, November WTI crude — which expired at settlement — gained 0.52%, or $0.30, to $57.82 per barrel.