**Crude Oil and Gasoline Prices Plummet Following US-Iran Ceasefire Agreement**
On Wednesday, May WTI crude oil (CLK26) dropped $18.54 (16.41%) to a 1.5-week low, while May RBOB gasoline (RBK26) fell $0.2993 (9.06%), reaching a 2-week low. This price decline follows a two-week ceasefire agreement between the US and Iran, along with Iran’s decision to reopen the Strait of Hormuz, which typically handles about 20% of the world’s oil supply. Additionally, US crude inventories soared to a 2.75-year high, rising by 3.08 million barrels, exceeding expectations of a 500,000-barrel increase.
Currently, more than 800 vessels are stuck in the Persian Gulf due to the ongoing conflict restricting oil tanker passage, significantly impacting oil shipments. The International Energy Agency (IEA) also reported that 40 energy sites across nine Middle Eastern countries are severely damaged. In contrast, US crude oil production slightly declined by 0.4% to 13.596 million barrels per day, near record high levels. US oil rig counts increased by two to 411, revealing a modest rise amid the backdrop of fluctuating global tensions and market conditions.
