Oil Prices Drop Over 2% Amid Geopolitical Easing

May 7, 2026

70 min

May 7, 2026 08:30

Oil slides 2%+ as traders price in de-escalation, heavy crude differentials swing

## Market Overview

Oil prices experienced a notable decline of over 2% during late Asian trading on Thursday. This drop is attributed to traders factoring in a reduction in geopolitical tensions and the potential reopening of critical shipping routes.

## Price Movements

West Texas Intermediate (WTI) crude fell to $93.03, marking a 2.16% decrease, while Brent crude dropped 1.99% to $99.25. Middle Eastern Murban crude also saw a decline, falling 2.13% to $96.20. In the U.S., refined products such as gasoline and heating oil also decreased, with gasoline down 1.22% and heating oil off by 2.15%.

## Physical Crude Benchmarks

Despite the futures market downturn, physical crude benchmarks showed varied movements. The OPEC basket increased by 1.54% to $118.33, and Russia's Urals crude rose 1.73% to $112.49. However, Canada's Western Canadian Select experienced a significant drop of 8.00% to $82.73.

## Divergence in the Market

Analysts note a divergence between futures and physical grades, with futures reacting swiftly to geopolitical developments, while physical grades adjust based on refinery demand and other factors. Heavy crudes, which are more complex to process, faced the most pressure due to narrowing margins for diesel and fuel oil production.

## Future Outlook

Traders are closely monitoring diplomatic developments and their impact on shipping flows and refinery operations in Asia. Although benchmarks have retreated from recent highs, the market remains in a state of adjustment following recent disruptions.

Read the full story at the source

What you need to know to get Emirates ID?

Leave your details and get a guide as a gift to avoid mistakes

Article contents