Oil prices climb as U.S. stockpiles shrink; OPEC+ meeting looms

Oil is more expensive in the markets. A barrel of West Texas Intermediate for June delivery costs 60 GBP on NYMEX in New York, up by 0.55%. Brent for July delivery on ICE costs approximately 63 GBP per barrel, up by 0.52%.

U.S. crude oil inventories last week fell by 2.51 million barrels, or 0.55%, to 457.02 million barrels - the U.S. Department of Energy (DoE) reported in its latest report.

This is the second consecutive week that U.S. oil stockpiles have decreased, marking the first occurrence since March. Currently, oil inventories in the United States are at their lowest level since mid-April.

Gasoline inventories fell last week by approximately 235,000 barrels, or 0.1%, to 227.77 million barrels - as per the DoE report.

Distillate fuel inventories, including heating oil, fell by about 45,000 barrels, or 0.04%, to 116.37 million barrels - as reported by the DoE.

Analysts believe this provides a reason for "oil bulls" to be optimistic, as oil prices may rise further.

In the U.S., refineries are starting to get "quite hot" as they increase fuel production in anticipation of the summer travel season. The start of the holiday travel period in the U.S. is unofficially marked by Memorial Day, which falls on May 27.

In the Midwestern U.S., refineries are now processing 3.8 million barrels of oil per day, the highest seasonal level since 2018.

Meanwhile, a significant meeting for fuel markets by OPEC+ is on the horizon. During the meeting scheduled for June 1 (GMT), oil ministers from the OPEC+ alliance will decide the future of oil supplies to global markets.

For now, it is widely anticipated that the 22 OPEC+ countries will extend the current restrictions on oil supplies for the second half of 2024 at the beginning of June.