Oil falls after unexpected rise in US inventories

Oil drilling rigs

Oil continued to slide for the fourth consecutive session today, May 23, following an unexpected rise in US inventories last week, and in light of fears of continued monetary tightening.

Brent crude was trading down 0.50% at $81.49 a barrel, at 08:06 am Makkah time, after losing 1.2%in the previous session.

West Texas Intermediate (WTI) crude fell 0.68% to $77.04 a 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.

In addition, concerns about the slowdown in the US economy resurfaced, following the expectations that monetary tightening cycle may continue for a prolonged period.

The minutes of the last meeting of the Federal Reserve Bank showed the concern of monetary policy makers about the rise in inflation and the slowdown in the progress made in this regard since the beginning of this year.