Noida, Sep 23 (APAC Media): Crude oil prices settled 2% lower at ₹8,633, pressured by easing concerns over prolonged disruptions to Middle East supplies after Iran signalled that it could reopen the Strait of Hormuz within seven days if the United States meets its demands.
The prospect of a reopening of the key shipping route has eased some of the market’s immediate supply concerns, while Saudi Arabia’s plans to resume exports from its Red Sea port of Yanbu also added pressure on prices.
“Expectations of a potential reopening of the Strait of Hormuz have reduced fears of an extended disruption to global crude flows,” market participants said, while cautioning that geopolitical risks remain elevated.
The Strait of Hormuz is a critical route for global oil shipments, and any prolonged disruption could tighten supplies and increase price volatility.
Meanwhile, US crude inventories continued to show mixed signals. Stocks in the Strategic Petroleum Reserve fell to 284.6 million barrels last week, their lowest level since October 1982, as part of an agreement involving the release of 172 million barrels.
US commercial crude inventories declined by 640,000 barrels to 423.4 million barrels in the week ended September 11, compared with market expectations for a 1.6-million-barrel draw. Inventories at the Cushing storage hub fell by 342,000 barrels.
Refinery crude runs decreased by 256,010 barrels per day, while refinery utilisation declined one percentage point to 96.9%. Gasoline inventories rose by 794,010 barrels to 207.7 million barrels, while distillate stocks increased by 1.6 million barrels to 107.1 million barrels. Net US crude imports fell by 1.18 million barrels per day.
“Crude oil is currently finding support around ₹8,447. A sustained break below this level could expose the market to further downside toward ₹8,248. On the higher side, ₹8,926 remains a key resistance level, and a decisive move above it could pave the way for a move toward ₹9,206,” analysts said.
In Libya, the Sharara oilfield, which has a production capacity of around 300,000 barrels per day, recorded a partial production reduction amid recurring operational and political disruptions.
OPEC has lowered its 2026 global oil demand growth forecast to 380,000 barrels per day, marking its fifth consecutive downward revision.
The International Energy Agency (IEA) has warned that prolonged disruptions in the Middle East could delay the normalisation of regional supply flows into 2027.
“The combination of shrinking inventory buffers and stretched refining capacity remains a key risk for the oil market,” the IEA said.
Technically, crude oil remains under long liquidation, with open interest falling 3.07% to 12,344 contracts alongside a ₹193 decline in prices.
–ENDS–
Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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