The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Crude oil prices declined following President Trump's decision to delay a planned military strike against Iranian targets. This de-escalation in geopolitical tensions reduced the immediate supply disruption fears that had been supporting prices. According to analyst reports, the subsequent drop in energy costs is expected to benefit ETFs within the retail, airline, and gold mining sectors.
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Sign InThis downward move coincides with data from the American Petroleum Institute (API) on May 12, 2026, which showed a crude inventory draw of 2.188 million barrels, exceeding market expectations of a 1.65 million barrel decline per market data. Additionally, the U.S. Producer Price Index (PPI) rose by 1.4% month-over-month on May 13, 2026, highlighting persistent inflationary pressures that could influence upcoming Fed policy decisions.
Traders are now monitoring technical support levels following the slide, especially after the EIA Weekly Petroleum Report on May 13, 2026, confirmed a significant stock decrease of 4.306 million barrels. Looking ahead, the market is awaiting the OPEC Monthly Report scheduled for May 13 for updated demand forecasts, alongside several Federal Reserve speeches which may impact the U.S. Dollar's strength and commodity pricing.
Update: President Donald Trump further de-escalated tensions by asserting that any conflict with Iran would end "very quickly," leading to a further reduction in the geopolitical risk premium. Analysts suggest this rhetoric supports market stabilization and mitigates recent volatility in energy prices.
Update: Reports indicate that the U.S. Commodity Futures Trading Commission (CFTC) has launched an investigation into a suspicious surge in oil futures trading that occurred just before the strike postponement was announced. According to the Wall Street Journal, the probe is specifically examining the timing of these trades to determine if any market manipulation or insider trading took place prior to the official news break.
Update: Oil prices have stabilized near the $110 level following Washington's decision to extend waivers for buyers of Russian crude. This consolidation comes as the US Strategic Petroleum Reserve reported a record drawdown of 9.9 million barrels, while domestic oil exports are projected to surpass 5.5 million barrels per day in May for the first time in history.
Update: Oil prices recorded further declines as Brent crude reached $110.59 (down 1.3%) and WTI slipped to $103.45 (down 0.9%) as of May 13, 2026. President Trump clarified that the suspended strike was a response to weekend drone attacks on Gulf energy facilities, a de-escalation that also pressured gold and copper prices lower.
Update: New geopolitical tensions have emerged as NATO weighs a military intervention option in the Strait of Hormuz by July to ensure energy supply security. A NATO summit is scheduled for July in Ankara to discuss securing these vital waterways, a move that could potentially reintroduce a risk premium to oil prices.