Oil inventories fall by 3.1M barrels Last Week: API

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Investing.com — U.S. crude stockpiles fell more than expected last week, the API reported Tuesday, in a sign of improving demand.   

, the U.S. benchmark, traded at $78.45 a barrel following the report after settling down at $78.02 a barrel.

fell by about 3.1 million barrels for the week ended May. 10, compared with an build of 509,000 barrels reported by the API for the previous week. Economists were expecting a decrease of 1.1M barrels. 

The API data also showed that gasoline stockpiles fell by 1.3M barrels, while distillate inventories increased by 349,000 barrels. 

The data come as some continue to remain bearish on oil prices, warning of weakness ahead amid concerns about non-OPEC supply growth. 

“After 2Q, we expect oil will become bearish as a result of NOPEC supply growth, decreasing OPEC+ space capacity and softer-than-anticipated demand due to persistent inflation,” Macquarie said in a recent note.

The report is due Wednesday.