May 7 2026: Oil prices fell sharply in late Asian trading on Thursday. This happened as traders reacted to signs that tensions in the Middle East might be easing. There is also a chance that major shipping routes in the Gulf region could reopen.
West Texas Intermediate crude fell 2.16% to $93.03 per barrel. Brent crude dropped 1.99% to $99.25. The Middle East benchmark Murban crude also slipped 2.13% to $96.20. Oil prices are dropping.
The decline shows that traders think the risks of conflict between the US and Iran might decrease. This could mean problems with getting oil supplies.
Oil futures moved lower. However physical crude prices showed results. The OPEC basket rose 1.54% to $118.33. Russia’s Urals crude gained 1.73%.
In contrast Canada’s Canadian Select heavy crude fell 8% to $82.73. This was one of the declines of the session. Analysts said that heavier crude grades faced pressure. This happened because refining margins for diesel and fuel oil narrowed.
Other crude benchmarks also weakened. India’s crude basket dropped 5.25%. Mexico’s export blend edged lower. Oil prices are moving unevenly.
Market participants are closely monitoring developments. They are watching Gulf shipping routes and refinery operations across Asia. Hopes for transit through the Strait of Hormuz have helped calm fears. These fears had previously pushed oil prices higher.
Analysts noted that futures markets react quickly to news about geopolitics. Physical crude markets adjust based on refinery demand, freight costs and crude quality differences. Oil markets are highly sensitive.
Although oil prices have retreated from highs they are still volatile. Traders continue to watch developments refinery demand trends and global economic data for direction. Oil prices will likely keep moving. Oil markets are cooling down. This happens as expectations of tension reduce immediate fears about oil supplies. However uneven movements across grades show that energy markets remain highly sensitive, to geopolitical and demand-related shifts. Oil prices are still uncertain.
