WTI Tightens as API Reports 4.93M-Barrel Crude Draw

API data released Tuesday showed US commercial crude oil inventories declined by 4.93 million barrels in the week ending October 16, following an even sharper 11.12 million-barrel draw the prior week. The back-to-back declines mark one of the most aggressive drawdown stretches this cycle for WTI-linked supply.

Over the past 27 weeks, commercial crude stocks excluding the SPR have shed more than 56 million barrels, though inventories remain only about 5 million barrels below year-start levels. The persistent drawdown pace is tightening the physical balance that underpins WTI futures pricing.

Traders will watch whether the EIA's official release confirms the API print, as consecutive large draws of this magnitude typically support front-month WTI spreads and can pressure the contango/backwardation structure.