Brent Oil ETF Drops on Peace Talks, US Storage Tanks Forecast Empty by July
BNO•United States Brent Oil Fund prices fell Wednesday after President Trump reported “great progress” toward an Iran peace deal, easing near-term supply concerns. Meanwhile, US oil storage tanks could run empty around July 4 as European facilities deplete by May, and OECD crude inventories approach a critical 24-day cover level.
1. Price Reaction to Peace Talks
United States Brent Oil Fund fell sharply on Wednesday trading after President Trump announced “great progress” toward an Iran peace agreement, cutting crude risk premium and driving Brent and WTI prices lower as market participants reprice near-term supply expectations.
2. Inventory Drawdown and Storage Outlook
Global petroleum inventories are depleting at a record pace, with OECD crude holdings set to reach a critical 24-day cover by June; analysts warn European storage may empty in May while US tanks could be drained by the July 4th period if the Strait of Hormuz remains closed.
3. Gasoline Price Forecast
Oil market strategist Stephen Schork maintains US gasoline prices are unlikely to reach $5 per gallon, attributing resilience to seasonal demand patterns and gradual relief from current logistical disruptions despite crude price volatility.
