Oil Prices Fall, Trump Hints at Peaceful Path to Restore Supply
Oil prices fell for a second day on Wednesday (May 6), as the market assessed the potential for easing tensions in the Middle East after US President Donald Trump hinted at the possibility of a peace deal to end the war with Iran.
Brent crude fell $1.89, or 1.7%, to $107.98 per barrel at 03:40 GMT, after falling 4% in the previous session. WTI fell $1.83, or 1.8%, to $100.44 per barrel, after closing down 3.9% the previous day.
Price pressure arose after Trump's statement on Tuesday that ship escort operations in the Strait of Hormuz would be temporarily paused due to progress toward a comprehensive agreement with Iran, though without providing details. There was no immediate response from Tehran, and Trump also said the US Navy would continue its blockade of Iranian ports.
According to LSEG analyst Anh Pham, this signal is seen as an opportunity for de-escalation, opening up hope that ships stuck in the Gulf could resume movement, allowing supply to gradually recover. However, Pham believes prices remain high because the certainty of a deal remains unclear, and the restoration of trade flows is expected to take time even if an agreement is reached.
From a fundamental perspective, the disruption of oil flows from the Strait of Hormuz has pressured supply and depleted global inventories, while preliminary data in the US also shows a decline in stockpiles. Market sources cited figures from the American Petroleum Institute that US crude oil inventories fell by 8.1 million barrels in the week ending May 1, with gasoline stocks down 6.1 million barrels and distillate stocks down 4.6 million barrels, indicating the market remains sensitive to geopolitical developments and physical supply conditions. (asd)*
Source: Newsmaker.id
