ETO Markets Global Pulse: Oil Slides 7%, Rebounds to 96

Market Review

According to ETO Markets monitoring, on May 6 (Wednesday), WTI crude fell sharply and closed at USD 95.08 per barrel, down 7.03% on the day. Brent crude also dropped 7.83% to USD 101.27 per barrel and briefly broke below USD 100. Oil prices fell to a near two-week low as reports of a potential US-Iran peace agreement pushed risk premium lower.

On May 7 (Thursday) during Asian trading, WTI crude recovered slightly, rising more than 1%. Prices are currently trading near USD 96.08 per barrel, showing a short-term rebound after the sell-off.

Global Headlines

US Iran Near Truce Memo

Pakistani sources said the US and Iran are close to reaching a memorandum of understanding aimed at ending the war. US officials and other people familiar with the matter said the Trump administration expects a one-page document to set the framework for later nuclear talks.

Trump Sees Iran War Ending

Trump said the Iran war is “very likely” to end and that both sides are close to a deal, though uncertainty remains. He said the agreement may include Iran sending highly enriched uranium to the US, while warning that military strikes could resume if talks fail.

Rezaei Demands Compensation From US

Mohsen Rezaei, military adviser to Irans Supreme Leader, said Iran will not allow the US to exit the crisis without paying a price. He said Washington is trying to use the Strait of Hormuz issue as a cover for withdrawal, but Iran will demand compensation for its losses.

30-Year Yield Nears Five Percent

The US 30-year Treasury yield moved close to 5% again. Bank of America described this level as a key psychological threshold for equities, as high oil prices keep inflation sticky and widen the gap between stocks and bonds.

Silver Low Positioning Draws Attention

ZeroHedge noted that silver speculative positioning has fallen to low levels after months of consolidation, while volatility has also eased. AI infrastructure demand continues to support silver as a key industrial metal. A sustained break above USD 80 could attract momentum buying.

US ADP Jobs Beat Forecasts

ADP data showed US private employment rose by 109,000 in April, above the Reuters forecast of 99,000. It also improved from the revised 61,000 gain in March, marking the strongest monthly increase since January last year.

ETO Markets Analyst View (WTI Oil)

WTI is trading above the 92.90 level, keeping short-term recovery potential intact. If prices continue to hold this key support, upside may extend toward 99.00 and potentially test 101.35.

If WTI falls below 92.90, the short-term structure may weaken. Downside risks could reopen toward 89.80 or even 87.60.

RSI is trending higher, suggesting that short-term momentum is still recovering. The market remains driven by US-Iran negotiation progress, expectations around the Strait of Hormuz, and macro data. Oil volatility may continue in the near term.

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