Oil rises amid supply concerns

Oil drilling rigs

Oil prices rose during trading today, May 21, as investors closely monitored developments in diplomatic talks between the US and Iran, amid additional support for the market resulting from  a decline in US crude inventories  and concerns about a global supply shortage.

This rise came after the two crude grades recorded a decline of more than 5.6% on May 20, marking their lowest levels in more than a week.

The slump followed statements by US President Donald Trump about the negotiations with Iran reaching the final stages, while simultaneously threatening more attacks in the absence of a peace agreement.

Meanwhile, countries continue to draw down their commercial and strategic stockpiles at an accelerating pace. Data from the US Energy Information Administration showed a record drawdown of about 10 million barrels from the strategic reserve last week, which reinforces fears of depleting global stockpiles.