At 2:32 PM on May 7th (Vietnam time), Brent crude futures fell by $2.16 (2.13%) to $99.11 per barrel. West Texas Intermediate (WTI) crude also fell by $2 (2.1%), trading at $93.08 per barrel. Earlier on May 6th, both major crude oil prices had dropped by more than 7%, reaching their lowest levels in two weeks.
Market confidence was bolstered by the prospect of the US easing its port blockade and Iran gradually reopening the Strait of Hormuz. Although negotiations remain challenging, the possibility of ending the conflict has relieved the psychological pressure that has been weighing on investors for some time.
Senior market analyst Priyanka Sachdeva at Phillip Nova noted that oil prices have been under a double impact from diplomatic efforts and the risk of supply disruptions for over two months, causing investor sentiment to fluctuate daily based on news. She believes that if a formal agreement is signed, oil prices could fall sharply as geopolitical pressure subsides. Conversely, any signs of escalating tensions in the Middle East could trigger a strong price surge.
Analysts believe that peace talks could last at least until the US-China summit next week. At that summit, ensuring international freedom of navigation is expected to be a top priority on the agenda of the two leaders, aiming to maintain stability in the global energy market.
Source: https://vtv.vn/gia-dau-tiep-tiep-giam-manh-100260507175322877.htm
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