On May 6, world oil prices fell for the 2nd consecutive session as the market expects supply from the Middle East to be resumed if the US and Iran reach an agreement to end the conflict.
Brent crude oil for July delivery fell 1.52 USD, or 1.38%, to 108.35 USD/barrel, after losing 4% in the previous session. US WTI crude oil for June delivery fell 1.50 USD, or 1.47%, to 100.77 USD/barrel, after falling 3.9% in the previous session.
This development occurred after US President Donald Trump suddenly announced the suspension of the escort operation through the Strait of Hormuz, citing progress towards a comprehensive agreement with Iran. However, he said the blockade of Iranian ports was still maintained.
The Strait of Hormuz, which transports about 1/5 of global oil and gas supplies, has been seriously disrupted since the US and Israel launched attacks on Iran. This situation has caused oil prices to rise sharply, with Brent reaching its highest level since March 2022 last week.
The US military previously announced that it had destroyed several Iranian small ships, cruise missiles and UAVs, and escorted two ships out of the Gulf through the Strait of Hormuz.
Supply disruptions caused global oil inventories to decline. According to market sources citing data from the US Petroleum Institute, US crude oil inventories fell 8.1 million barrels in the week ending May 1. Gasoline inventories fell 6.1 million barrels and distillate products fell 4.6 million barrels.
Signals from negotiations and changes in military operations are directly impacting global energy price fluctuations.
