Oil prices moved lower on June 4 after Israel and Lebanon announced a ceasefire agreement, easing concerns about a broader conflict in the Middle East and reducing fears of potential disruptions to global oil supplies.
Brent crude fell 0.8% to $97.03 per barrel, while West Texas Intermediate (WTI) dropped 0.7% to $95.32 per barrel after both benchmarks had gained roughly 2% the previous day amid escalating regional tensions.
The ceasefire has raised hopes that diplomatic progress could extend to ongoing discussions between the United States and Iran. President Donald Trump indicated that developments in negotiations could emerge as early as this weekend, although Iranian officials stated that talks remain ongoing and no breakthrough has been reached.
Despite the pullback in prices, U.S. crude inventory data provided bullish support. The Energy Information Administration reported that crude oil stockpiles fell by 8 million barrels during the week ending May 29, while exports surged to 5.9 million barrels per day, one of the highest levels on record.
Market participants will continue to monitor developments in the Middle East, U.S.-Iran negotiations, and global supply fundamentals as oil prices remain sensitive to geopolitical risks and inventory trends.
Author: phinds
