Oil closes higher as US inventories decline

Oil drilling rigs

Oil closed positive following a volatile trading today, May 15, supported by the second consecutive weekly decline in US crude inventories. A slowdown in the inflation rate in the United States enhanced the possibilities of interest rates being lowered, leading to a rise in demand for energy.

Brent crude futures for July delivery rose 0.45%, or 37 cents, at $82.75 per barrel, after falling during the session to $81.05.

WTI crude for June delivery rose 0.8%, or 61 cents, to record $78.63 per barrel, after falling during trading to $76.70.

Data from the US Energy Information Administration revealed that oil stocks fell by 2.5 million barrels last week, which exceeded expectations of a decline of 400,000 barrels. Crude stocks at the Cushing delivery center declining by 300,000 barrels to 35 million barrels.

Prices were under pressure after the International Energy Agency lowered its forecast for growth in global oil demand, for the second month in a row. The agency said it expects demand to grow by 1.1 million barrels per day in 2024, that is, 140,000 barrels per day less than previous expectations.