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Informist, Wednesday, May 6, 2026

--Brent crude oil Jul futures contract falls below $100/bbl, down 11% 

--WTI crude oil Jun futures contract falls below $90/bbl, down 12% 

MUMBAI – Futures contracts of Brent crude oil Wednesday fell 11% to below $100 per barrel on the Intercontinental Exchange. Similarly, the June contract of West Texas Intermediate slipped 12% to below $90 per barrel on the New York Mercantile Exchange, as the absence of a full-scale escalation and continued efforts to maintain shipping routes led to profit booking and price correction, analysts at Kedia Advisory said. 

Traders took note of renewed hopes for a peace agreement between the US and Iran, owing to which prices fell, analysts said. Iran's paramilitary Revolutionary Guards Navy has reportedly said that safe and stable transit of the Strait of Hormuz will be possible, further bolstering fresh hopes of an imminent peace deal. 

The White House is nearing a potential agreement with Iran on a one-page memorandum of understanding to end the conflict and establish a framework for broader nuclear negotiations, according to an Axios report citing multiple US officials and sources familiar with the talks.

Meanwhile, the Organization of the Petroleum Exporting Countries revised down its global oil demand forecast for the second quarter by 500,000 barrels per day due to temporary weakness linked to geopolitical uncertainties. On the supply side, OPEC and its allies confirmed a production increase of 188,000 barrels per day for June. This marks the third consecutive monthly increase, though it is lower than last month's due to the United Arab Emirates's exit from the organisation on May 1.

However, the decision of the UAE to leave OPEC when the global oil markets are reeling from a record loss of supply, could cap the losses. The exit increases the likelihood that oil markets will be less anchored and more reactive in the coming months, reinforcing a structurally higher volatility outlook, according to analysts at ANZ.

At 1739 IST, the most-active June contract of crude oil on the NYMEX was down over 9% at $92.7 per barrel. The most-active July contract of crude oil on the Intercontinental Exchange was down 9% at $100.3 per barrel.  End

US$1 = INR 94.61

Reported by Taniva Singha Roy

Edited by Avishek Dutta

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