WTI crude oil futures pared earlier losses and stabilized around $102 per barrel on Wednesday, following a 7.6% surge over the previous three sessions. The consolidation came after the International Energy Agency warned that global observed oil inventories declined at a record pace of roughly 4 million barrels per day in March and April.
In its Oil Market Report, the IEA cautioned that, with stocks already falling sharply, further price volatility is likely heading into the peak summer demand season. It added that the market could remain significantly undersupplied until October, even if the conflict is resolved sooner.
Ongoing tensions in the Middle East continue to disrupt supply routes, prompting Asian refiners, including those in Japan, to seek alternatives to Persian Gulf crude. At the same time, reports indicate that Iranian export shipments have recently stalled, marking the first sustained disruption since the conflict began.
US President Donald Trump said the situation remains under control, seeking to soothe market concerns ahead of talks with China’s President Xi Jinping.
