May WTI crude oil prices declined by 1.24% on Wednesday, closing at a notable lower level, while May RBOB gasoline saw a sharper drop of 3.51%. This downward trend follows President Trump’s comments indicating a potential end to the war with Iran in two to three weeks, sparking optimism in the market. Additionally, EIA data reported an increase in U.S. crude inventories, rising 5.45 million barrels to a 2.75-year high, which also contributed to the price fall.
As the Strait of Hormuz remains largely obstructed, global oil supply has suffered, with Persian Gulf oil producers reducing output by approximately 6%. Reports reveal that around 290 million barrels of Russian and Iranian crude are currently stored on tankers due to sanctions and blockades. Meanwhile, the recent surge in U.S. crude oil production remains relatively stable at 13.657 million barrels per day, slightly below its record high from November 2022. Baker Hughes data shows the U.S. active oil rig count fell by five to 409 rigs, the lowest since December 2022.
