Oil Prices Edged Up On Drop In U.S. Inventories – 13 May, 2020

An unexpected decline in U.S. crude inventories helped prop prices, though the fear of second wave spread of the virus and new lockdown measures capped gains. U.S West Texas Intermediate crude futures rose 8 cents or 0.8% to $25.37 per barrel. Brent crude futures were up 0.2% or 6 cents to $29.25 per barrel. U.S. crude inventories fell 745,000 barrels to 531.5 million barrels in the week of May 8, a relief to the market after analysts had initially forecast predicted an increase of 4.1 million barrels. As some countries began to relax lockdown restrictions over the last few weeks, oil prices have seen an increase. Prices were also helped when multiple major oil producing companies agreed to cut production, as well as by OPEC cuts expected to curb production by 9.7 million barrels per day taking effect in May and June.