WTI crude futures trimmed earlier gains on Wednesday, retreating to around $85 per barrel after briefly nearing $89, as traders weighed the likelihood of a coordinated release of strategic oil reserves aimed at easing market pressures. Reports suggested Japan could move as soon as Monday, while an earlier Wall Street Journal article said the IEA had proposed its largest-ever joint release. The G7 has expressed support in principle, with energy ministers set to meet today to discuss the potential drawdown of stockpiles.
At the same time, the conflict involving Iran continues, and the timeline for any resolution remains unclear. US Defense Secretary Pete Hegseth said yesterday it “will be our most intense day of strikes.” Major Middle Eastern producers have jointly cut output by more than 6 million barrels per day as the Strait of Hormuz remains effectively closed to traffic. Later today, OPEC is due to publish its monthly report on the global crude market.
