Oil rises as US inventories decline; Brent exceeds $83

Oil drilling rigs

Oil closed in the positive territory today, May 8, following a larger-than-expected decline in US inventories with contracts down to their lowest levels in eight weeks.

Brent crude futures for July delivery rose 0.5%, or 42 cents, to close at $83.58 per barrel, after falling during the session to $81.71.

WTI crude for June delivery gained 0.8%, or 61 cents, to record $78.99 per barrel, after touching $76.89 during trading.

Data from the US Energy Information Administration revealed that oil inventories decreased by 1.4 million barrels during the week ended May 3, while expectations indicated a decline by one million barrels.

The rise in prices was limited by the increase in gasoline and distillate stocks, which raised concerns about the outlook for domestic demand, but Matt Smith, chief American analyst at Kepler, attributed this to the increase in refining activity.