Brent Crude Oil Price Heads for Record Monthly Gain Amid Ongoing Uncertainty

The price of Brent crude oil is heading for its largest monthly gain in history, with WTI not far behind. According to LSEG data, front-month Brent futures are set for an all-time record monthly gain of 59% since June 1988. The more active June contract was trading 64 cents higher at $108.03 per barrel at the same time.

U.S. West Texas Intermediate futures for May were up $1.35, or 1.31%, at $104.23 at 0959 GMT. Front-month Brent futures swung in a range of up 2.5% to down 1.3% from Monday's close, indicating volatile trading.

Uncertainty persists due to the ongoing military campaign against Iran and the threat of supply shocks from a prolonged closure of the Strait of Hormuz. Trump told aides he is willing to end the military campaign even if the Strait remains largely closed, leaving its reopening for a later date, The Wall Street Journal reported.

Sugandha Sachdeva, founder of SS WealthStreet, said 'Even in the event of de-escalation, restoring damaged infrastructure will take time, keeping supply tight.' Lin Ye, vice president for commodities markets and oil at Rystad Energy, warned that with the remaining buffers being consumed, we are moving closer to physical oil shortages across a wider geographic scope.