Summary
- International oil prices fell nearly 4%% after the US confirmed that its ceasefire with Iran remained in effect.
- Brent crude and WTI futures prices closed down 3.99%% and 3.90%%, respectively, as the market took comfort from the development.
- Energy consultancy Ritterbusch said optimistic US comments on the ceasefire prompted some selling, but said the move was largely a technical correction.
Forecast Trend Report by Period
International oil prices fell nearly 4% after the US confirmed that its ceasefire with Iran remained in effect despite ongoing clashes.
Brent crude for July settlement closed at $109.87 a barrel on the ICE Futures exchange on May 5, down 3.99% from the previous session.
West Texas Intermediate crude for June delivery settled at $102.27 a barrel on the New York Mercantile Exchange, down 3.90%.
Tensions over control of the Strait of Hormuz persisted, but the market drew relief from the US government's statement that the ceasefire remained in place.
US Defense Secretary Pete Hegseth said the ceasefire with Iran was still valid.
Worries about supply disruptions also eased as some vessels continued to pass through the Strait of Hormuz on a limited basis. Danish shipping company Maersk said its US-flagged vessel Alliance Fairfax transited the strait the previous day under US military escort.
Energy consultancy Ritterbusch and Associates said in a report that optimistic US government comments on the ceasefire prompted some selling. The firm added that the day's decline was largely a technical correction after last week's sharp rally.
Go Jeong-sam, Hankyung.com reporter, jsk@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
