Oil futures pare earlier gains; Brent crude futures, U.S. crude futures down over $3 in volatile trade

Oil futures pared earlier gains on Tuesday, with both Brent crude and U.S. West Texas Intermediate (WTI) crude futures settling down over $3 in a volatile session. Front-month Brent crude futures for May delivery closed at $115 per barrel, down $2.22, or 1.97%, while the more actively traded June contract was at $108.03 per barrel, up 64 cents, or 0.6%. U.S. WTI crude futures for May settled at $104.23 per barrel, up $1.35, or 1.31%.

The session was marked by significant price swings, with front-month Brent futures fluctuating between gains of 2.5% and losses of 1.3% from the previous day's close. The volatility came amid mixed signals from U.S. President Donald Trump, who reportedly indicated a willingness to end the military campaign against Iran without reopening the Strait of Hormuz. Despite these signals, uncertainty over the region's energy infrastructure and ongoing attacks on maritime assets continued to weigh on market sentiment.

Brent crude futures were on track for a record monthly gain of 59%, while WTI was up 56%, the largest jump since May 2020. Analysts noted that even if a de-escalation occurs, the restoration of damaged infrastructure will take time, keeping supply tight and upward pressure on prices. Meanwhile, OPEC oil output dropped by 7.3 million barrels per day in March, reflecting the impact of forced export cuts due to the closure of the Strait of Hormuz.