Brent Crude Extends Gains After Record Monthly Rally
Brent crude futures rose on Wednesday following a record 64 percent rally in March. Market volatility persists despite reports of potential diplomatic progress.
Brent oil futures maintained their upward momentum in early Wednesday trading, following a historic surge in March. The market remains on edge due to persistent Middle East volatility, even as reports emerge that the United States and Iran may be moving toward a diplomatic resolution to the ongoing conflict.
The front-month Brent contract for June delivery rose 66 cents, or 0.63%, to $104.63 per barrel. This extension follows a record-breaking March where Brent futures gained 64%, the highest monthly increase since LSEG data tracking began in 1988. Meanwhile, W&T Offshore, Inc. crude futures for May delivery rose 96 cents to $102.34 per barrel, reflecting the broader price pressure across the energy sector that impacts various producers, including Barnwell Industries, Inc..
Market analysts suggest that while diplomatic efforts are reportedly ongoing, the lack of tangible results and continued threats to energy assets maintain a high risk for supply disruptions. Prices had seen a temporary decline on Tuesday following unconfirmed media reports regarding the Iranian government's willingness to end hostilities.
The U.S. could end the military campaign within two to three weeks and Iran doesn't have to make a deal to end the conflict.
President Donald Trump made this statement to reporters, signaling a potential timeline for winding down the month-long war. However, experts warn that even a swift end to the fighting may not immediately alleviate supply constraints due to significant infrastructure damage.
A critical concern remains the Strait of Hormuz, a primary transit point for 20% of global oil and liquefied natural gas trade. Reports indicate that the military campaign could potentially conclude before the strait is fully reopened. The impact of the closure was evident in March, as OPEC oil output plummeted by 7.3 million barrels per day compared to the previous month.
The prolonged disruptions have forced a major reassessment of long-term energy prices. A recent survey of economists and analysts predicts that Brent crude will average $82.85 per barrel in 2026. This represents a 30% increase from forecasts issued in February and marks the sharpest annual revision in the history of the Reuters oil poll.
