Oil prices increased on Thursday (May 16) as U.S. crude inventories fell for the second consecutive week and inflation showed signs of weakening.

Specifically, the U.S. Energy Information Administration (EIA) reported a 2.5 million-barrel decrease in crude oil stocks last week, with refiners processing more crude, indicating potential rising demand.

At the close of trading on May 16, WTI crude futures rose by 60 cents (or 0.76%) to $79.23 per barrel. Brent crude futures gained 52 cents (or 0.63%) to $83.27 per barrel.

With inflation easing slightly in April, markets are anticipating that the Federal Reserve may cut interest rates in September 2024. Lower interest rates could stimulate the economy and boost crude oil demand.

WTI and Brent crude have seen slight increases since the start of the week, but are still down 3% and 5.2% respectively for the month.

Source: Vietstock