Crude Oil Drops 22% in 1 Month: OMC, Aviation and Tyre Sectors in Focus

Crude oil price extended their decline on June 25, 2026, as easing concerns over supply disruptions in the Middle East weighed on the market. Progress in US-Iran peace negotiations and the resumption of tanker movement through the Strait of Hormuz have reduced fears of disruptions to global oil supplies. 

Brent crude futures for August delivery fell 0.54% to $73.34 per barrel, while US West Texas Intermediate (WTI) crude declined 0.38% to $70.07 per barrel. Brent crude has fallen more than 22% over the past 1 month and is now trading below the $75-per-barrel level. 

Why Is Crude Oil Falling? 

Oil price came under pressure after indications of progress in diplomatic discussions involving the United States and Iran improved the outlook for global crude supplies. 

The resumption of tanker traffic through the Strait of Hormuz has further eased concerns regarding supply disruptions. Increased crude availability from the Middle East and other producing regions, including West Africa, has also weighed on market sentiment. 

In addition, physical oil markets have shown signs of softer demand conditions, with Brent's prompt spread moving into contango territory, indicating improved near-term supply availability. 

Oil Marketing Companies Remain in Focus 

Lower crude oil is generally favourable for oil marketing companies as the cost of crude purchases declines. 

Companies such as BPCL, HPCL, and IOC may benefit from improved marketing margins when crude oil declines faster than adjustments in retail fuel prices. Lower crude oil can also reduce inventory and working capital requirements for refiners. 

Aviation Sector May Benefit from Lower Fuel Costs 

The aviation sector is another area closely linked to crude oil. 

Aviation Turbine Fuel (ATF) forms a substantial portion of airline operating expenses. A decline in crude oil can reduce fuel costs and support profitability, subject to passenger demand and fare trends. 

InterGlobe Aviation, the operator of IndiGo remains among the companies being tracked by investors as crude oil declines. 

Read More: ZF Commercial Vehicle Control Systems Allots Bonus Shares in 5:1 Ratio to Shareholders Recorded on June 24, 2026 

Paint and Tyre Companies May See Input Cost Relief 

Several raw materials used by paint manufacturers are derived from petroleum products. Lower crude price can therefore reduce costs for companies such as Asian Paints and Berger Paints. 

Tyre manufacturers may also benefit as key inputs including synthetic rubber, carbon black and nylon tyre cords are linked to petrochemical price. Companies such as MRF and Apollo Tyres remain in focus as lower raw material costs could support margins. 

Specialty Chemical and Plastic Companies Also Impacted 

The decline in crude oil price may provide cost benefits to specialty chemical and plastic manufacturers that rely on petrochemical derivatives and polymers as raw materials. 

Lower input costs can support operating margins across segments where raw material expenses form a significant portion of production costs. 

Conclusion 

Crude oil price has moved below $75 per barrel as supply concerns eased following progress in US-Iran peace discussions and improved tanker movement through the Strait of Hormuz. Lower crude oil has brought sectors such as oil marketing, aviation, paint, tyre and specialty chemicals into focus due to their exposure to energy and petrochemical costs. 

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