**Crude Oil Prices Drop Amid Negotiations and Blockade**
On Tuesday, May WTI crude oil prices fell by $7.80, a decrease of 7.87%, closing at a significant loss in light of ongoing peace negotiations between the US and Iran. Meanwhile, May RBOB gasoline prices decreased by $0.0765, or 2.46%. This decline follows the US Treasury’s authorization for certain Russian crude oil transactions and broader concerns regarding global oil supply disruptions, exacerbated by a full US naval blockade of the Strait of Hormuz.
As of April 10, the International Energy Agency reported that approximately 13 million barrels per day of global oil supply have been impacted by the ongoing conflict in the region, with OPEC+ planning to increase crude production by 206,000 barrels per day in May. In addition, Baker Hughes reported that the number of active US oil rigs remained unchanged at 411, continuing a downward trend from a recent high of 627 rigs in December 2022. The upcoming EIA report is expected to show a rise in crude inventories by 1.9 million barrels, while gasoline supplies may drop by 2.0 million barrels.
