Good News! Crude Oil Prices Fall, Touching US$60s per Barrel
Jakarta, CNBC Indonesia - Global crude oil prices have brought good news worldwide. After reaching US$100 per barrel in recent months, the ‘mother of commodities’ is gradually cooling and now sits in the US$60s per barrel range.
Citing Refinitiv data, both major global crude oil benchmarks experienced declines in the final trading session of the week. Brent crude oil was recorded plunging 4.34% to US$71.99 per barrel on Friday (26/6/2026). Similarly, West Texas Intermediate (WTI) crude oil slumped 3.74% to US$69.23 per barrel. Over the week, Brent crude prices fell 10.65% and WTI dropped 9.62%.
Crude oil prices cooled after the market grew increasingly confident that supply disruptions from the Middle East would not be as severe as initially feared. The return of tanker traffic through the Strait of Hormuz has reduced the perception of geopolitical risk, although security incidents around Oman still loom. Market participants are now paying more attention to shipping traffic developments than the escalation of the conflict itself.
Trade data shows that oil shipment volumes through the Strait of Hormuz rose this week to their highest level since the outbreak of the United States-Israel conflict with Iran last February. The ceasefire agreement reopened shipping lanes that had previously been disrupted, easing concerns about hampered global supply.
However, the situation has not fully normalised. The number of vessels transiting remains well below the pre-conflict average of around 125 ships per day. This means that while shipping is beginning to recover, global oil distribution activity has not yet returned to pre-crisis conditions.
On the other hand, geopolitical risk continues to haunt the market. On Thursday (25/6/2026), a cargo ship was reported hit by an unknown projectile near Omani waters. The incident briefly pushed oil prices up by more than 2% after the United Nations maritime organisation temporarily suspended a voluntary evacuation scheme for vessels in the area. Two United States officials claimed Iran fired shots at a ship transiting the Strait of Hormuz, while Iranian authorities stated the safety of ships sailing outside the official Hormuz route could not be guaranteed.
This situation leaves the market caught in a tug-of-war between two major sentiments. On one hand, oil export routes are increasingly open, reducing supply fears. On the other, any new security incident around Hormuz still has the potential to revive the geopolitical risk premium if it hampers tanker traffic or forces producers to review plans to increase production.
Another sentiment came from Venezuela. An earthquake that occurred on Thursday raised concerns about the sustainability of the country’s oil production. Initial assessments showed that oil, gas, refinery, pipeline, and export terminal facilities did not suffer significant damage as most were located far from the earthquake’s epicentre. However, power supply disruptions have created uncertainty over whether production of around 1.2 million barrels per day can be maintained in the near future.
The market’s focus has now shifted from the threat of a Strait of Hormuz closure to how quickly oil shipping activity can return to normal. As long as tanker traffic continues to improve and no major new disruptions to global supply emerge, downward pressure on oil prices is likely to persist, although volatility remains high due to unpredictable security risks in the Middle East.
The decline in global crude oil prices also offers hope for accelerating the world economy. This is because global crude oil prices affect energy prices, which ultimately impact inflation and people’s purchasing power. When energy prices fall, purchasing power will remain more solid, thereby boosting an economy that was projected to slow in 2026 due to the Middle East war.