Brent closes below $82 amid demand concerns

Oil drilling rigs

Oil deepened its losses today, May 22, after US crude oil inventories rose in the week ended May 17 contrary to expectations, raising fears of a weak demand.

Brent crude futures for July delivery fell 1.2%, or 98 cents, to close at $81.90 a barrel—the lowest level since March 12 ($80.95).

WTI crude for July delivery (the most active) fell by 1.4%, or $1.09, to record $77.57 per barrel.

Data from the US Energy Information Administration (EIA) revealed that oil inventories rose by 1.8 million barrels last week, while expectations indicated a decline by 2.4 million barrels. Crude inventories at the Cushing Delivery Center increased to 36.3 million barrels from 35 million barrels.

The EIA said that US crude production was unchanged at 13.1 million barrels per day for the eleventh week in a row, but the report showed a decline in demand for oil – measured by finished products supplied to the market – by about 27,000 barrels per day during the week.