US oil inventories fell again last week

US crude oil inventories keep falling.

On Wednesday, data from the Energy Information Administration showed that commercial crude inventories fell by 2.7 million barrels in the week ended May 15.

Inventories fell by 2.19 million barrels in the prior week, which was a slowdown from the previous period.

This week's decline brought the total to 482 million barrels, and oil inventories are still at 80-year highs.

Following the release, West Texas Intermediate crude oil was up more than 1% at around $58.81 per barrel.

The build in inventories that was fueled by the shale boom is now slowing down.

In a note Monday, Morgan Stanley analysts wrote that the rebound in drilling activity may be slower than expected, following an oil and gas conference in Houston.