May WTI crude oil prices dipped to a three-week low, closing down 0.05%, while May RBOB gasoline rose by 0.98%. The decline in crude prices was influenced by reports of a potential two-week extension of the ceasefire between the US and Iran, which could ease supply concerns. However, a surprise drop in US crude inventories by 913,000 barrels provided some support to prices, highlighting ongoing volatility in the market.

The mixed performance in oil prices reflects broader supply dynamics, particularly as the International Energy Agency noted that approximately 13 million barrels per day of global oil supply has been impacted by the ongoing conflict in the Middle East. Additionally, OPEC+ plans to increase production face challenges due to regional instability, with Saudi Aramco recently raising prices for its oil grades, indicating strong demand amid constrained supply.

Market professionals should monitor the implications of geopolitical developments and inventory trends closely, as these factors are likely to influence crude prices and overall market sentiment in the coming weeks.

Source: nasdaq.com