NEW YORK / Content Syndication Services / — Oil prices tumbled more than 5% in volatile trading as Brent crude and U.S. West Texas Intermediate posted sharp one-day declines, reversing part of a recent surge linked to disruptions around the Strait of Hormuz. Brent crude settled at $105.02 a barrel, down 5.6%, while WTI crude settled at $98.26, down 5.7%, placing both benchmarks near their lowest levels in more than a week.
The selloff occurred alongside renewed movement of crude tankers through the Strait of Hormuz, a key route for oil exports from Gulf producers. Ship-tracking data showed two China-bound tankers carrying Iraqi crude and another vessel carrying Kuwaiti crude to South Korea moving through the waterway. The three vessels together carried about 6 million barrels, marking a notable increase in observed tanker traffic through the route.
U.S. public remarks on Iran talks also remained in focus during the session, with officials describing negotiations as advanced. Market attention has centered on the Strait of Hormuz since regional disruption earlier this year tightened seaborne crude flows and lifted benchmark prices. The waterway is one of the world’s most important energy corridors, linking Gulf exporters with buyers in Asia, Europe and other consuming regions.
Supply data complicates price decline
The decline in crude futures came despite official U.S. inventory data showing tighter domestic supply. The U.S. Energy Information Administration reported that commercial crude inventories, excluding the Strategic Petroleum Reserve, fell by 7.9 million barrels in the week ended May 15 to 445.0 million barrels. That level was about 2% below the five-year average for this time of year.
The U.S. Energy Information Administration also reported that total motor gasoline inventories fell by 1.5 million barrels and were about 5% below the five-year average. Distillate fuel inventories rose by 0.4 million barrels but remained about 9% below the five-year average. Total commercial petroleum inventories declined by 9.0 million barrels, while refinery inputs averaged 16.3 million barrels per day.
Energy markets track Hormuz flows
Broader oil-market data still showed the impact of earlier supply disruption. In its May outlook, the federal energy agency said Brent crude had reached a high of $138 a barrel on April 7 and averaged $117 a barrel for April after the de facto closure of the Strait of Hormuz tightened global supplies. The agency projected large global inventory draws in the second quarter, with Brent averaging around $106 a barrel in May and June.
The latest move leaves crude prices elevated compared with levels before the regional disruption, even after the 5% drop. Energy traders continued to monitor physical flows, official inventory releases and refinery activity for signs of supply conditions across major consuming markets. The price decline also fed into wider attention on fuel costs, shipping routes and petroleum-product inventories as governments, refiners and buyers assessed confirmed market data.