Oil prices fall sharply as risk sentiment weakens, with major benchmarks declining significantly.

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WTI and Brent crude prices decline as investors take profits, while weaker economic data from China and the US dampens the demand outlook.

Global oil prices declined sharply on Wednesday (May 6), with major crude benchmarks falling over 3% as traders reacted to easing market concerns and engaged in profit-taking ahead of the weekend.

At around 7:08 am Tokyo time, US WTI crude futures were trading near $102.27 per barrel, down $3.91 or 3.7%, while Brent crude slipped to $110.29, losing $4.15 or 3.6%, according to OilPrice.org.

Both benchmarks have remained highly sensitive this week to changing global economic conditions and geopolitical developments.

Other crude grades also recorded losses, with Murban crude slipping 1.37%, gasoline declining nearly 2.9%, and natural gas falling about 3.6%, according to the data.

Volatility was also reflected across the broader crude complex, with the OPEC Basket down 3.8% at $116.54, while US heavy grades such as Mars dropped 4.85%.

However, not all energy commodities ended the session in negative territory.

Canada’s Western Canadian Select gained around 5% to about $94 per barrel, while AECO C natural gas surged nearly 15%, underscoring regional supply factors.

Meanwhile, the Dubai and Indian crude baskets were broadly steady over the session.

Traders attributed the price decline to a mix of profit-taking and rising concerns over demand in major consuming economies, including weaker economic indicators from China and the US.

No fresh supply disruptions were reported, although analysts said oil markets remain highly sensitive to developments in the Middle East and to production outlooks from key exporters.

The US military also reported early progress under “Project Freedom,” aimed at ensuring merchant vessels can continue transiting the Strait of Hormuz despite Iranian threats, while US restrictions on Iran remain in place.

Prices were quoted ahead of the European and US trading sessions and may fluctuate further as markets react to incoming economic data and geopolitical developments.

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