Noida, July 28 (APAC Media): Crude oil prices fell 7.6% to settle at 7,959, pressured by easing tensions between the United States and Iran that reduced fears of near-term supply disruptions.
The pause in military strikes by both sides over the weekend boosted expectations that diplomatic efforts could help prevent further escalation and support the potential reopening of the Strait of Hormuz, a key channel for global oil shipments.
Despite continued attacks by Iran-backed Houthi forces on Saudi energy infrastructure in the Red Sea region, traders remained focused on improving prospects for stable crude exports and a more secure supply outlook.
Crude oil prices remained significantly higher on a monthly basis, having gained nearly 40% during the recent conflict that disrupted supply flows through the Strait of Hormuz and the Red Sea.
Market fundamentals presented a mixed picture, with supply and inventory data offering conflicting signals. The US Energy Information Administration reported a 2.013-million-barrel rise in US crude inventories, against market expectations for a decline. Gasoline and distillate stockpiles also increased, suggesting softer near-term demand conditions.
US crude imports climbed by 485,000 barrels per day, while inventories at the Cushing delivery hub fell by 674,000 barrels.
Meanwhile, crude reserves in the US Strategic Petroleum Reserve declined to 311.6 million barrels, the lowest level since March 1983, as government releases continued.
Goldman Sachs retained its forecast for Brent crude prices at US$80 per barrel for the fourth quarter of 2026, expecting geopolitical risks to moderate later this year.
Separately, OPEC+ approved an additional production increase of 188,000 barrels per day from August, supporting expectations of stronger global supply as key export routes gradually normalise.
However, crude oil is experiencing long liquidation, with open interest declining 16.68% to 12,357 lots, indicating profit booking after the recent rally. Immediate support is placed at 7,814, followed by 7,671, while resistance stands at 8,180. A sustained break above this level could extend the upside towards 8,403, whereas a failure to hold key support levels may invite further selling pressure.
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Disclaimer:Â This article is for informational purposes only. APAC Media is not liable for any investment decisions or losses. Please conduct your own research or consult a financial advisor before investing.
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