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EMEA Oil Update: Crude Eases as Iran Reportedly Grants Limited Passage Through Hormuz

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Crude futures slipped on Thursday with the start of the Trump-Xi summit and reports of 30 vessels successfully navigating the Strait of Hormuz providing the backdrop to the trading day.

Front-month Murban crude futures dropped 0.6% to $103.51 per barrel, while Brent futures fell by 0.5% to $105.13/bbl.

According to Iranian state media, about 30 vessels have crossed the Strait of Hormuz since Wednesday evening with Tehran's permission.

The market also had an eye on the high-stakes summit between US President Donald Trump and China's President Xi Jinping in Beijing.

"The market could be pinning too much hope on the US-China talks yielding some positive results on Iran. Some hope that China could exert pressure on Iran to reach a deal with the US, to end the war and lead to a resumption of energy flows through the Strait of Hormuz," ING analysts said.

Meanwhile, Trump has sought to temper expectations, prioritizing trade negotiations and asserting that Washington has the Iran situation "under control."

In its latest monthly report, the IEA slashed its 2026 demand outlook, now forecasting a global contraction of 420,000 barrels per day.

OPEC's production plummeted by 1.73 mb/d in April to 18.98 million bbl/d, the group noted in its monthly oil market report.

This output drop reflects the impact of the Hormuz blockade, with the data notably including the final month of UAE membership before its May 1 departure from the group, analysts noted.

US crude inventories fell by 4.3 million barrels to 452.9 mmbbls in the week ended May 8, the Energy Information Administration said in its weekly report on Wednesday.

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