Oil swings rattle markets
Crude volatility is back — Brent has traded roughly $112–$115/barrel and WTI near $97–$105, stoking equity losses across the board ( ). The moves knocked the Dow about 300 points and dragged the S&P down ~1.5% and Nasdaq ~2% in the latest sessions as traders price Kharg Island supply risk and U.S. SPR talk ( ).
The Energy Department said contracts were awarded for the first 45 million barrels of the SPR exchange and that deliveries have commenced this week. (energy.gov), energy.gov / bloomberg.com) The U.S. contribution is part of a 400 million‑barrel IEA coordinated release and Washington’s plan totals 172 million barrels, with an initial 86 million offered as an exchange rather than an outright sale. (iea.org), iea.org / worldoil.com) Bloomberg reports traders are already reshaping the futures curve by selling prompt months and buying later-dated contracts as the SPR exchange will deliver crude in April–May and require returns through as late as September 2028. (bloomberg.com), bloomberg.com) Kharg Island — where U.S. forces struck military targets this month — handles roughly 90% of Iran’s crude exports and has a loading capacity that analysts say can affect about 1.5 million barrels per day of Iranian shipments. (msn.com), reuters.com / cnbc.com) Market desks say the SPR exchange’s logistics — including sour crude grades, delivery to specified refill sites, and multi‑year return windows — are complicating bids and helping sustain short‑term volatility in prompt physical markets. (bloomberg.com), bloomberg.com / worldoil.com) Bloomberg and other market monitors link the oil shock to risk‑off across asset classes this week, noting equities, bonds and gold all sold off as traders priced a prolonged supply disruption through the Strait of Hormuz. (bloomberg.com), bloomberg.com / bloomberg.com)
