April WTI crude oil fell by $10.78 (-11.37%) to around $84 per barrel after hitting a 3.75-year high of $119.48 on Monday, following Israeli airstrikes on 30 Iranian oil depots. The drop came amid statements from President Trump predicting a quick end to the ongoing war and discussions among G-7 finance ministers about oil stockpile releases to stabilize global energy supply.
The situation escalated with a Pentagon report of intensified US military bombing in the region and an Iranian drone attack that halted operations at the UAE’s largest refinery. The Strait of Hormuz, a crucial passage for global oil shipping, remains largely closed, forcing Persian Gulf producers to cut output by 6% as storage facilities approach capacity. In response to the conflict, OPEC+ announced a planned increase of 206,000 barrels per day, but this has become uncertain with ongoing production cuts due to the war.
Current floating storage levels show about 290 million barrels of Russian and Iranian crude, a 50% increase year-over-year. Recent US inventory data indicated crude oil stocks are 2.7% below the seasonal average, while gasoline inventories are 4.4% above. As of early March, the number of active US oil rigs increased to 411, slightly above record lows experienced in late 2022.
