Global Oil Prices Remain High Despite 0.60% Decline
Jakarta – Global oil prices remained above US$100 per barrel despite correcting during trading on Tuesday, 5 May 2026. Geopolitical tensions between the United States (US) and Iran, along with market concerns over the depletion of global supplies, have kept energy prices high.
Crude oil Brent and West Texas Intermediate (WTI) had surged during Monday’s trading session, 4 May 2026, rising 6 per cent and 4 per cent respectively.
According to CNBC International, the Brent crude futures contract for July delivery fell 0.60 per cent to US$113.77, or approximately Rp1.98 million (based on an estimated exchange rate of Rp17,430 per US dollar) per barrel. Meanwhile, West Texas Intermediate (WTI) declined more sharply by 1.35 per cent to US$105.06, or about Rp1.83 million per barrel.
The price drop occurred as the market assessed the risk of near-term supply disruptions amid escalating conflict in the Middle East. The ceasefire between the US and Iran is reportedly on the brink of collapse following Iranian drone and missile attacks on the United Arab Emirates (UAE).
In response to Iran’s attack on the UAE, the US government claimed to have sunk an Iranian vessel in the strategic Strait of Hormuz. President Donald Trump issued a stern warning in an interview with Fox News.
“Iran will be wiped off the face of the earth if they target US ships protecting commercial traffic in that strait,” Trump stated.
In a separate post on social media platform Truth Social, Trump shared an image of a South Korean cargo ship that was attacked in the Strait of Hormuz. He wrote, “Perhaps it’s time for South Korea to join this mission.”
Market concerns were also triggered by signs of tightening global supply conditions. Although global oil inventories have not yet reached critical levels, a Goldman Sachs report indicates that the rate of stock depletion and uneven distribution are increasing the risk of shortages in several regions.
This global investment bank also highlighted that accessible reserves of refined products are shrinking rapidly, particularly for petrochemical feedstocks such as naphtha and LPG, as well as jet fuel.