U.S. refined product futures slid more than 10% at midday Wednesday, with crude oil contracts down well over $10/bbl, following news of a U.S.-Iran ceasefire deal and hopes that Middle East oil would begin to flow again soon.
At 11:50 a.m. ET, May Nymex West Texas Intermediate was down by about $17.20 to $95.80/bbl and June WTI was $11.70 lower to $87.70/bbl.
London-based June ICE Brent was down around $14.15 to $95.15/bbl and July Brent was off by $9.80 to $90.25/bbl.
Both front-month WTI and Brent are set for their biggest one-day declines since the start of the Covid pandemic back in 2020.
Refined product contracts also fell sharply. May ULSD was about 61.85cts lower to $3.859/gal and June ULSD was down 51.5cts to $3.582/gal. May RBOB was 31.5cts lower to $2.9905/gal and June RBOB was down 26.75cts to $2.8995/gal.
TD Securities said in a Wednesday note that lower oil prices and equity market rallies reflect a reduction in risks, not a material improvement in the underlying macroeconomic outlook. The investment firm also said that it would take months for the energy supply to begin to normalize.
Despite the ceasefire deal, petroleum prices remained well above levels prior to the U.S. and Israeli attack on Iran on Feb. 28, underpinned by elevated uncertainty over the temporary agreement and the terms of safe passage through the Strait.
According to the Wall Street Journal, few ships were attempting trips through the Strait of Hormuz on Wednesday despite President Trump's call for a "complete, immediate and safe opening" as a condition for his two-week ceasefire.
Kuwait said Wednesday it was attacked with numerous Iranian drones, some of which were targeting oil, power and water-desalination infrastructure.
Energy traders are also digesting the latest data released by the Energy Information Administration that showed a seventh consecutive weekly increase in U.S. commercial crude oil inventories while both gasoline and diesel inventories fell.
This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.
Reporting by Frank Tang, ftang@opisnet.com; Editing by Michael Kelly, mkelly@opisnet.com
(END) Dow Jones Newswires
April 08, 2026 12:17 ET (16:17 GMT)
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