May WTI Crude Oil futures exhibited significant volatility, opening with a gap higher at 96.15 before surging to 102.70—an 8.78% intraday gain—and subsequently giving back a portion of the advance. The aggressive early price action comes as the Strait of Hormuz remains severely restricted despite recent ceasefire announcements. Recent ship tracking data indicated only 11 vessels transited the strait over a 24-hour period, representing roughly 8% of normal daily traffic, as new permission-based routing and sea mine avoidance measures slow operations. Concurrently, the EIA weekly inventory report revealed a larger-than-expected build of over 3 million barrels, contrary to consensus estimates for a 1 million barrel draw. While slowing exports and steady refinery utilization have slightly eased the domestic crude balance, the global supply picture remains historically tight due to the ongoing logistical constraints in the Middle East.
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