Oil closes lower, Brent drops 1.2%

Oil drilling rigs

Oil turned lower during today, May 14, after OPEC reported its estimates on the growth of demand during the current and next years, in light of expectations for US interest rates and their potential impact on energy demand.

Brent crude futures for July delivery fell 1.2%, or 98 cents, to close at $82.38 per barrel.

WTI crude for June delivery fell 1.4%, or $1.1, to record $78.02 per barrel.

In its latest monthly report, OPEC maintained its demand estimates from the previous month, expecting global oil demand to grow by 2.2 million barrels per day in 2024, and 1.8 million barrels per day in 2025.

Meanwhile, US data renewed fears of inflation and continued monetary tightening, as the producer price index rose by 0.5% in April, exceeding expectations of 0.3%, and recording the largest annual increase in a year at 2.2%.

The American Petroleum Institute's report on oil inventories is expected to be issued later today, and the US Energy Information Administration is scheduled to issue official inventory data on May 15, amid expectations that crude inventories will fall by 400,000 barrels.