Domestic oil inventories declined for a second consecutive week, falling by 400,000 bbl during the period ended May 7 and keeping stocks below the five-year average, the U.S. Energy Information Administration (EIA) said Wednesday.

Stocks plunged by 8.0 million bbl — excluding those in the Strategic Petroleum Reserve – a week earlier as year/year demand mounted alongside declining coronavirus cases, more economic activity and increased consumption of travel fuels over the past month.  

At 484.7 million bbl, U.S. crude oil inventories were about 2% below the five-year average at the end of last week, EIA said in its Weekly Petroleum Status Report (WPSR).

The recent draws from stocks likely reflected accumulating demand over the last several weeks, as consumption actually...