Crude oil prices fell sharply on Thursday, with June WTI crude closing down 1.69%, amid growing concerns that elevated energy prices are dampening demand and global economic growth. This decline followed a mixed performance in energy markets, as RBOB gasoline surged to a 3.75-year high. The U.S. GDP growth rate of 2.0% for Q1 was below expectations, further fueling worries about a slowdown in energy consumption.

The mixed signals from the energy sector come as geopolitical tensions escalate, particularly regarding U.S. military options in Iran and ongoing disruptions in the Strait of Hormuz. Goldman Sachs estimates that crude output in the Persian Gulf has been significantly curtailed, with a potential drawdown of global crude stockpiles reaching nearly 1 billion barrels by June. Meanwhile, the UAE’s decision to exit OPEC could lead to increased production, adding bearish pressure to crude prices.

Market professionals should closely monitor these developments, as ongoing geopolitical tensions and potential shifts in OPEC dynamics could significantly impact energy prices and overall market sentiment in the coming weeks.

Source: nasdaq.com