Oil prices rise as crude inventories fall, inflation eases

Oil (BZ=F, CL=F) is on the rise as US crude stockpiles begin to decline, showing signs of increased demand. In addition, notably, natural gas prices (NG=F) have risen over 50% within the past two months, also showing signs of increased demand.

Yahoo Finance Reporter Ines Ferré joins Market Domination Overtime to break down the latest developments for oil and natural gas prices.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

This post was written by Nicholas Jacobino

Video transcript

And checking in Now on oil as US crude stockpiles decline for a second week, it's a positive signal for demand Yahoo Finance is in for right here with the latest on the oil market.

Hi, Ines.

Hi, Julie.

Yeah, When we see stockpiles decreasing, that is bullish for oil.

So taking a look at where we're at today, we did see WT I and Brent crude on our WiFi interactive.

You can see that those arose today.

Both WT I just above $79 per barrel.

Brand crude also higher year and a day.

By the way.

WT I is of about 12% of Brent.

Crude is up about 10% now.

Oil has been going a little bit higher over the last couple of sessions.

We do have the expectation that the Fed will be cutting rates.

So part of the reason why we have seen oil go higher is because of that expectation that would be bullish for oil because lower rates would stimulate the economy.

That would be good for demand.

I do want to mention something else that's going on in the energy market, and that is natural gas prices.

You can see that natural gas is at around $2.50.

That's up about more than 2% today, But I want to show you a one month chart so you can see up 43% over the last month.

EI a data showing that last week's build fell short of estimates.

That's also bullish for natural gas.

You've had recent production shut ins that's been bullish for natural gas, and analysts are expecting that the summer will be hot, so you will have some demand.

Remember that we saw natural gas prices at below $2 back in around April, where you just saw a glut of supply in the market that has changed over the last several weeks.

And by the way, in that last CP I report that was reported yesterday, you saw two components of the energy index, which were down month over month in April 1 of them was electricity.

The other one was natural gas.

Natural gas.

Coming off those lows recently,