RismadarVoice Reporters, June 5, 2026
Global oil prices fell on Thursday as investors reacted to signs of easing geopolitical tensions in the Middle East, with expectations that a potential ceasefire could reduce disruptions to energy supply routes, including the strategically vital Strait of Hormuz.
Brent crude futures dropped by $3.20, or 3.27 per cent, to $94.61 per barrel, while U.S. West Texas Intermediate (WTI) crude declined by $3.71, or 3.86 per cent, settling at $92.31 per barrel.
The price decline followed reports that Israel and Lebanon had agreed to a ceasefire framework, raising hopes of broader diplomatic engagement involving key regional and international actors, including the United States and Iran.
Market analysts said the development eased fears of supply disruptions that had earlier pushed prices higher amid heightened conflict risks in the region. Attention has also shifted to possible negotiations tied to the Israel–Hezbollah conflict, with Iran reportedly insisting that any agreement must include a halt to hostilities.
Oil markets had surged earlier in the week after renewed tensions, including reported Iranian strikes on Kuwait and U.S. military responses near key maritime routes.
Beyond geopolitical developments, additional market factors also influenced trading sentiment. In the United States, crude inventories fell by 8 million barrels in the week ending May 29, according to the Energy Information Administration, a significantly larger draw than the 4 million barrels expected by analysts.
Meanwhile, Russia reported a decline in oil output linked to unplanned refinery maintenance, marking a rare official acknowledgement of production setbacks.
In Washington, the U.S. House of Representatives passed a resolution seeking to limit former President Donald Trump’s authority to carry out military operations against Iran. However, the measure still faces a difficult path in the Senate and would require a supermajority to override a presidential veto.
Despite the global price drop, energy markets remain volatile, with traders balancing shifting geopolitical risks against supply and demand signals.
In Nigeria, oil sector performance has remained strong, with the Nigerian National Petroleum Company Limited reporting a more than 70 per cent rise in revenue and profit. The Dangote Refinery has also benefited from increased fuel exports, even as domestic fuel prices remain elevated, contributing to inflationary pressure on consumers.
