Futures contracts for crude oil fell for the third consecutive session on Wednesday (May 22), extending the weekly decline as oil prices dropped ahead of the crucial OPEC meeting in June.

Both WTI and Brent crude contracts have decreased by more than 2% so far this week.

At the end of trading on May 22, the WTI crude contract lost $1.09 (equivalent to 1.39%) to $77.57 per barrel. The Brent crude contract fell 98 cents (equivalent to 1.18%) to $81.90 per barrel.

The U.S. Energy Information Administration (EIA) reported an unexpected increase in commercial crude oil inventories by 1.8 million barrels last week, contrary to analysts' forecast of a 2.5 million barrel decrease.

Additionally, gasoline inventories fell by 910,000 barrels, more than the forecasted decrease of 729,000 barrels. The refining capacity utilization rate was at 91.7%, up by 1.3%.

Oil prices are declining due to a lack of major market-supporting developments as investors have eased geopolitical tensions.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, led by Russia, will hold a significant meeting next weekend to review production policies. The OPEC+ alliance is currently cutting 2.2 million barrels per day, which has supported oil prices this year. Analysts suggest that the group may extend production cuts as oil prices continue to decline.

Source: Vietstock