API data shows 399,000-barrel crude stockpile drop

The American Petroleum Institute reported a 399,000-barrel decline in US commercial crude oil inventories for the week ended July 3. The figure, released late Tuesday, came ahead of the official Energy Information Administration data due Wednesday.

Gasoline stockpiles also registered a change, though the API did not specify the direction or magnitude in the preliminary release. Traders often treat the API report as a first read on domestic supply-demand balance, though the official EIA numbers carry more weight for market moves.

The draw is modest by historical standards. US crude inventories have been running near the five-year average for this time of year, with refinery runs and export volumes shaping weekly balances. The small draw suggests supply and demand are roughly in line, though the market will focus on any directional signal in Wednesday's EIA report.

The API prints estimates from its member companies each Tuesday. The EIA issues its weekly petroleum status report at 10:30 a.m. ET on Wednesday, covering crude, gasoline, distillates, refinery utilization, and net imports.

For traders tracking the commodity, the crude oil profile on AlphaScala provides a deeper look at the drivers behind weekly inventory changes. Crude markets have also been sensitive to broader macro signals, including demand expectations from China and OPEC+ supply decisions.