Crude oil prices have remained rangebound for a while now, but a decrease in U.S. commercial crude oil inventories and a sequential decline in inflation in April have raised expectations of a rise in crude prices. U.S. commercial crude oil inventories for the week ending May 10, 2024, decreased by 2.5 million barrels from the previous week.
U.S. crude oil inventories of 457 million barrels are about 4% below the five-year average for this time of year. Moreover, a lesser-than-expected rise in inflation in April has boosted the expectations of rate cuts this year. Rate cuts could help aid the demand for commodities, especially crude oil.
