New Delhi: Crude oil prices edged slightly higher on Thursday after US President Donald Trump reaffirmed his commitment to maintaining pressure on Iranian oil revenues. The gains were further supported by a sharp drop in US crude inventories, suggesting robust demand in the world’s largest economy.
Market sentiment remained cautious amid the fragile ceasefire between Iran and Israel.
Data from the US Energy Information Administration (EIA) showed a significant drawdown of 5.84 million barrels for the week ending June 20—bringing inventories to their lowest seasonal level in 11 years.
At around 0925am (India time), the August Brent crude futures on the Intercontinental Exchange traded at $67.92 per barrel, up 0.35% from the previous close. The August contract for West Texas Intermediate (WTI) rose 0.40% to $65.18 a barrel.
For India, heavily dependent on imported crude, oil price movements remain particularly significant.
As of 24 June, the Indian crude basket was priced at $68.83 per barrel. The average so far this month stands at $70.09 per barrel—up from $64.04 in May, though still below the January 2025 average of $80.20. The Indian basket reflects a weighted average of imported sour grades (Oman and Dubai) and sweet grades (Brent Dated) that are typically processed by Indian refineries.
“Oil prices edged higher after US President Donald Trump said his maximum pressure campaign on Iranian oil will continue, and a government report showed another large decline,” said Vikas Jain, head of research at Reliance Securities.
On Wednesday, Trump had clarified that he was “not giving up” on the sanctions strategy targeting Iran’s oil revenues—despite earlier signals suggesting a possible easing of measures. Iranian oil remains under US sanctions.
“Markets stabilized ahead of next week’s US–Iran talks aimed at de-escalating tensions and addressing Tehran’s nuclear program. Meanwhile, US crude inventories dropped by 5.8 million barrels, hitting the lowest seasonal level in 11 years, signalling strong demand,” said Rahul Kalantri, vice president for commodities at Mehta Equities Ltd.
The spotlight now shifts to the upcoming OPEC+ meeting on July 6, where member countries will decide on production policy for August.
“Investors are now eyeing the July 6 OPEC+ meeting, where members including Russia may support a supply increase if deemed necessary to meet market needs. We expect crude oil prices to remain volatile in today’s session,” Kalantri added.
Prices have shown some stability following sharp swings over the past fortnight. After Trump announced the ceasefire on Tuesday, oil prices retreated to levels seen before Israel’s 13 June attack on Iran. Earlier this week, US strikes on three Iranian nuclear facilities had sent prices surging to five-month highs on Monday amid concerns over the Strait of Hormuz.
Investors are now closely watching whether the ceasefire will hold in the coming days.
India—which imports over 85% of its crude needs, with nearly 36% routed through the Strait of Hormuz—has welcomed the de-escalation and offered to contribute to regional peace efforts.
