Market Overview
Crude oil settled up 0.85% at ₹7,964 as investors monitored diplomatic efforts between Iran and Oman concerning the Strait of Hormuz. The talks aim to establish a permanent maritime corridor covering administration of the strait, information sharing, traffic management, and maritime and security services. Pakistan’s army chief travelled to Tehran to support the diplomatic push, while Qatar continued its mediation role.
US Policy and Inventory Data
Washington’s latest measures against Iran were viewed as less aggressive than expected, with the United States stopping short of imposing secondary sanctions on Iranian trading partners. US crude inventories presented mixed signals: one dataset showed a 4.2 million‑barrel increase for the week ended 21 August, against expectations of a 1.9 million‑barrel rise, while the Energy Information Administration reported a smaller 95,000‑barrel gain, bringing total inventories to 428.9 million barrels, below the anticipated 597,000‑barrel increase. Cushing inventories rose by 1.2 million barrels, and refinery utilization improved by 0.2 percentage points to 97.4%.
Product Stock Levels
Gasoline inventories fell by 2.5 million barrels to 206.8 million barrels, and distillate stocks declined 2.2 million barrels to 103.4 million barrels.
Production, Imports and Commercial Stocks
US crude production increased to 13.83 million barrels per day from 13.805 million barrels per day, a year‑on‑year rise of 503,000 barrels per day. Net crude imports decreased by 161,000 barrels per day. Commercial crude inventories, excluding the Strategic Petroleum Reserve, have dropped more than 45 million barrels over the past 19 weeks, although year‑to‑date stocks remain 5.8 million barrels higher.
OPEC Outlook
OPEC lowered its 2026 global oil demand growth forecast to 580,000 barrels per day, marking its fourth consecutive downward revision, while raising its 2027 growth projection (specific figure not disclosed).
Technical Market Indicators
Open interest rose 5.95% to 10,438 contracts, and prices gained ₹67, suggesting renewed bullish participation. Crude oil found support at ₹7,779; a sustained break below this level could push prices toward ₹7,593. Resistance is positioned at ₹8,094, and a decisive move above this threshold could extend gains toward ₹8,223.