Oil prices fell on Tuesday after former US President Donald Trump hinted that negotiations with Iran were still on the table, easing fears of a supply disruption in the Middle East. West Texas Intermediate crude dropped by more than 2 percent in early trading, while Brent crude also declined.
Record US crude exports in May
US crude exports surged to an all-time high of 5.6 million barrels per day in May, according to data from the Energy Information Administration. The record was driven by strong demand from Asian and European refiners, who turned to American oil as the crisis in the Middle East threatened supplies from the region.
Impact of Middle East tensions
The ongoing conflict in West Asia has created significant volatility in global oil markets. Refiners have been diversifying their sources to mitigate risks, with US crude becoming a preferred alternative. The record export figure underscores America's growing role as a key supplier in times of geopolitical uncertainty.
Trump's comments, made during a press conference, suggested that diplomatic channels with Iran remained open despite recent escalations. This statement helped calm market fears of an immediate supply shock, leading to a sell-off in oil futures.
Analysts remain cautious, noting that the situation remains fluid. Any further deterioration in US-Iran relations could quickly reverse the price decline. Meanwhile, OPEC+ is expected to monitor the market closely and adjust output levels if necessary.
