Crude Oil Swings Higher
2026-05-07 17:16
By
Andre Joaquim
1 min. read
WTI crude oil futures erased their sharp losses to $95.5 per barrel on Thursday as markets continued to wait for clarity on potential supply from the Persian Gulf.
Iran was still reviewing the memorandum sent by the US to end their two-month war, which would include the gradual resumption of tanker flows from the Middle East.
President Trump had signaled optimism on Iran agreeing to the concessions, which drove oil and refined product prices to plunge last session.
Still, the pullback was limited as global oil supply is expected to remain muted even if restrictions in the Strait of Hormuz are lifted.
Resumption of production capacity in GCC states is due to be slow do to damage and insurers are reluctant to service tankers crossing the Strait following reports of strikes in the region.
The halt in exports from the key region drove the US to deplete its product stocks, with gasoline inventories dropping for 12 consecutive weeks, while those for distillate fuel fell for nine weeks.