Oil rises after investors factor in US inventory data

Oil rose in early session today, May 9, after data showed a larger-than-expected decline in US stocks of crude oil.

Brent crude was trading up 0.41% at $83.92 a barrel, at 08:31 am Makkah time. West Texas Intermediate (WTI) crude rose 0.53% to $79.41 a barrel.

US oil inventories rose by 509,000 barrels during the week ended May 3, the American Petroleum Institute (API) data showed.

The Energy Information Administration data released on May 8 showed that US crude oil inventories fell by 1.4 million barrels last week, compared to the expectations of a decline by only one million barrels.

However, stocks at the Cushing Center in Oklahoma increased by 1.88 million barrels to 33.33 million barrels during the same period, giving investors mixed signals about the state of fuel demand in the world's largest economies.

Meanwhile, Goldman Sachs said it does not expect OPEC+ to announce a partial reduction in voluntary production cuts at the ministerial meeting scheduled to be held in June, as oil inventories have increased unexpectedly recently.