Crude Oil Prices Sink as Hormuz-Reopening Talks Continue

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Rich Asplund

Wed, May 27, 2026 astatine 2:21 PM CDT 5 min read

July WTI crude lipid (CLN26) connected Wednesday closed down -5.21 (-5.55%), and July RBOB gasoline (RBN26) closed down -0.0798 (-2.54%). Crude lipid and gasoline prices connected Wednesday fell sharply for a 2nd day, with crude posting a 5-week debased and gasoline posting a 6-week low. Crude prices are nether unit successful hopes of a bid woody betwixt the US and Iran that could soon reopen the Strait of Hormuz.

Crude prices sold disconnected connected Wednesday aft Iranian tv said it obtained an unofficial draught of the US-Iran memorandum, which said US subject forces would assistance the naval blockade of Iran portion Iran would let restored commercialized transit shipping done the Strait of Hormuz. However, crude prices recovered from their lows erstwhile US officials said the unofficial draught obtained by Iranian authorities tv is simply a "complete fabrication" and "not true."

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On Tuesday, the Washington Post reported that the US and Iran person agreed to a memorandum extending the ceasefire by 60 days arsenic the 2 sides question a imperishable deal. If agreed, the Strait of Hormuz would beryllium de-mined and reopened successful the meantime. Secretary of State Rubio said negotiations volition inactive "take a fewer days" arsenic some sides sermon connection successful an archetypal document.

Earlier this month, the International Energy Agency (IEA) said successful a monthly study that planetary observed lipid inventories declined astatine astir 4 cardinal bpd successful March and April, and that the marketplace volition stay "severely undersupplied" until October, adjacent if the struggle ends adjacent month.

Energy prices stay underpinned by the US-Iran war, which is keeping the Strait of Hormuz fundamentally closed. The ongoing struggle is exacerbating planetary lipid and substance shortages, arsenic astir a 5th of the world's lipid and liquefied earthy state transits done the strait. Goldman Sachs estimates that crude output successful the Persian Gulf has been curtailed by astir 14.5 cardinal bpd, and that the existent disruption has drawn down astir 500 cardinal bbl from planetary crude stockpiles, which could deed a cardinal bbl by June. Persian Gulf lipid producers person been forced to chopped accumulation by astir 6% owed to the closure of the Strait of Hormuz arsenic section retention facilities scope capacity. Earlier this month, the IEA said that much than 80 vigor facilities had been damaged during the conflict, and that betterment could instrumentality arsenic agelong arsenic 2 years.

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