Crude oil opened Monday trading above 82 dollars per barrel in global markets. Later, prices reversed sharply and settled near 77 dollars by close. During the session, Gulf crude even touched around 76 dollars per barrel. This movement reflected one of the fastest drops in recent trading activity.
Iran-US Talks and Export Approval Influence Sentiment
Market direction shifted after positive discussions between US and Iranian officials. US authorities also allowed Iranian oil sales for a two-month period. This decision reduced immediate concerns linked to global supply disruption.
At the same time, sentiment improved across energy trading markets.
Supply Side Expands as Gulf Output Signals Strengthen
Gulf countries indicated higher production across upcoming supply cycles. UAE, Kuwait, and Iraq increased oil supply offerings to global buyers. Shipping data showed nearly 20 lakh barrels moving through Hormuz Strait. This reflected a rebound in tanker traffic after earlier slow movement.
US Crude Also Sees Strong Weekly Pressure
US WTI crude dropped to nearly 73 dollars per barrel on Monday. It closed with a 4.53 percent decline during the session. On Tuesday, prices stayed flat around 74 dollars per barrel.
Overall, US crude recorded nearly 5.50 percent fall in 24 hours.
Production Plans and Recovery Estimates Shape Outlook
Iraq planned gradual output restoration between 4.2 and 4.3 million barrels daily. ANZ projected early recovery of 2 to 3 million barrels per day. Future estimates suggest possible additional output adjustments by 2026. However, some supply reductions may continue for short or long duration.
Fuel Price Expectations Improve in Domestic Markets
Crude decline strengthened expectations of relief in petrol and diesel prices. Prices in India remained unchanged for nearly 29 consecutive days. Delhi petrol stood at 102.12 rupees per litre in current rates.
Experts expect refinery gains to reflect once cheaper crude arrives.
