On Wednesday, May 22, 2026, oil markets remained relatively stable. The ceasefire between Iran and the US, which has been in effect for more than six weeks, remained intact. Tanker shipments through the Strait of Hormuz gradually resumed. Geopolitical risk has faded from the front burner of the market, allowing market players to return to the fundamentals of supply, demand, seasonality, and other key factors that have not been a priority this past quarter and a bit.
With the truce remaining solid for the past few weeks, prices for both WTI and Brent remained relatively steady. U.S. shale production was still robust, and OPEC+ output adjustments kept output levels at their previously adjusted level. Some production was returning to normal, although it was not yet at full normalization. Demand for oil in Asia also recovered a bit following the steep price hikes earlier this year. Demand for oil in most emerging markets remains relatively subdued, since consumers there are highly sensitive to fuel prices.