31.03.202623:41:00UTC+00WTI Retreats Further as Peace Hopes Rise

WTI crude traded around $101.70 per barrel on Wednesday morning, extending the previous session’s decline as expectations grew for a potential de-escalation in the Middle East. The Wall Street Journal reported that President Donald Trump may halt US operations before the Strait of Hormuz reopens, in an effort to avoid prolonging the conflict. Iran’s president likewise signaled a readiness to end hostilities if sufficient guarantees are provided.

Nonetheless, skepticism persisted, given Iran’s history of firm preconditions and the continued deployment of US troops, which keeps the risk of renewed escalation elevated. Even with the recent pullback, oil prices surged nearly 40% in March, marking their strongest monthly rally since 2022, underpinned by supply disruptions and infrastructure damage in several key OPEC producers.

On the data front, US crude inventories jumped by 10.263 million barrels in the week ended March 27, the largest weekly increase in weeks, following a 2.3 million barrel build previously and confounding expectations for a 1.3 million barrel draw.