Overview

• Oil prices dropped nearly 4% following President Trump's announcement of progress in U.S.-Iran nuclear negotiations, which could lead to lifted sanctions and increased Iranian oil exports.
• Iran's Ali Shamkhani indicated Tehran's willingness to abandon uranium enrichment if U.S. sanctions are removed, further boosting expectations of a deal.
• The U.S. Energy Information Administration confirmed a 4 million-barrel increase in crude inventories for the week ending May 9, surprising markets and contributing to downward price pressure.
• Gasoline and distillate inventories fell by 1 million and 3.2 million barrels, respectively, ahead of the summer driving season, reflecting tighter refined product supplies.
• OPEC+ continues to increase oil production, while revising down non-OPEC supply growth forecasts, adding complexity to global supply-demand dynamics.