Oil prices fell on Wednesday, May 13, as investors awaited news of a fragile ceasefire in the Middle East and prepared for a key summit in China between US President Donald Trump and Chinese President Xi Jinping.
This was reported by Economic Pravda with reference to Reuters.
The report said that Brent futures fell USD 1.22, or 1.1%, to USD 106.55 per barrel. U.S. West Texas Intermediate crude fell USD 1.16, or 1.1%, to USD 101.02 a barrel.
Both benchmarks have mostly held near or above USD 100 a barrel since the U.S. and Israel launched strikes on Iran in late February, effectively closing the Strait of Hormuz.
"Concerns about supply disruptions and uncertainty surrounding the Middle East are supporting oil prices, even as traders struggle to see a clear direction," said Priyanka Sachdeva, senior market analyst at Phillip Nova.
"The market remains very sensitive to any new signals from the region, so sharp swings are likely to continue. Any further escalation or direct threat to supply flows could quickly restore strong upward momentum for both Brent and WTI," she added.
It is noted that on Tuesday, oil prices rose by more than 3%, extending an earlier rally after hopes of a lasting ceasefire between the United States and Iran faded.
It also reduced the chances of the Strait of Hormuz, through which about a fifth of the world's oil and liquefied natural gas flows normally pass, being opened.
As Ukrainian News Agency earlier reported, on Monday, May 4, oil prices fell slightly after US President Donald Trump said that Washington would begin providing assistance to ships blocked in the Strait of Hormuz, but the lack of a peace deal between the United States and Iran kept the market above USD 100.
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