Oil prices declined by approximately 2% on 29 May as reports emerged that the US and Iran may have reached an agreement on a potential ceasefire extension.
By 10:59 GMT, July Brent crude futures, which expire today, had dropped by $1.66, or 1.77%, to $92.05 a barrel (bbl), reported Reuters
August Brent contracts, which have greater trading volumes, fell by $1.63 to $91.07/bbl. US West Texas Intermediate (WTI) futures also declined by $1.55, or 1.74%, to $87.35/bbl. For the week, Brent crude has dropped around 11%, its steepest decline since the week ending 6 April.
WTI also saw a significant weekly fall of nearly 10%, its sharpest since the week ending 13 April. Price volatility was notable, with both benchmarks swinging as much as $6/bbl on differing reports about a potential end to the Iran conflict and the status of the Strait of Hormuz. The Strait of Hormuz, a key waterway for oil and liquefied natural gas (LNG) shipments, remains largely disrupted, with traffic at a fraction of pre-conflict levels.