April WTI crude oil (CLJ26) closed up 4.55% on Wednesday at $87 per barrel, following a spike to $119.48 earlier in the week after Israeli airstrikes on Iranian oil depots. The price decline was influenced by President Trump’s remarks about a quick end to the Iran war and plans for an emergency oil stockpile release. The International Energy Agency (IEA) announced a release of 400 million barrels from member nations’ strategic reserves amid ongoing conflict affecting oil shipping through the Strait of Hormuz, which typically accounts for 20% of global oil supplies.
As of March 6, U.S. crude oil inventories rose by 3.824 million barrels, exceeding expectations, while production slightly decreased to 13.678 million barrels per day. OPEC+ announced a plan to increase output by 206,000 bpd in April, although this may be complicated by production cuts due to the Middle East conflict. Vortexa data indicates 290 million barrels of Russian and Iranian crude are currently in floating storage, highlighting the impact of geopolitical tensions on supply.
