Summary
- International oil prices were mixed as tensions in the Strait of Hormuz and the rollout of Project Freedom added uncertainty to the market.
- OPEC+ agreed to a 188,000-barrel-a-day output increase, drawing attention to expanding supply.
- Experts said the global economy could enter a recession if Brent crude remains near $125 a barrel for an extended period.
Forecast Trend Report by Period
International oil prices were mixed amid tensions in the Strait of Hormuz and uncertainty over a US plan to support vessel movements.
CNBC reported on May 4 that July Brent crude slipped slightly to $101.94 a barrel, while June West Texas Intermediate traded up 0.15% at $108.33.
Shipping through the Strait of Hormuz has been severely curtailed by the blockade. The waterway is a vital route that handles about 20% of global seaborne energy shipments, and escalating tensions in the Middle East have kept fears of supply disruptions alive.
The United Kingdom Maritime Trade Operations said a tanker was attacked near Fujairah in the United Arab Emirates on May 4, adding that navigational risks remain high.
President Donald Trump has said the US would support the movement of neutral-country vessels under an initiative called Project Freedom. The measure is scheduled to take effect on May 4, based on Middle East time. US Central Command said it plans to support the operation with destroyers, about 100 aircraft and roughly 15,000 troops.
The market is also watching OPEC+, which recently agreed to increase output by 188,000 barrels a day. The decision is being viewed as the first since changes among key member states.
Experts have warned that prolonged tensions in the Middle East could weigh on the global economy. Gaurav Ganguly, head of international economics at Moody’s Analytics, said the world economy could fall into recession if Brent crude remains around $125 a barrel for an extended period.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
