Crude Oil Prices Rebound Over 3% on Lower US Crude Inventories and Supply Outlook | July 29, 2026

Crude oil prices recovered strongly in early trading on Wednesday, July 29, 2026, gaining more than 3% after industry data pointed to a sharp decline in U.S. crude inventories, as per news reports.  

The rebound followed heavy losses in the previous session, when hopes of easing tensions between the United States and Iran weighed on oil prices. 

Brent crude futures climbed US$2.71, or 3.2%, to US$86.80 a barrel, while U.S. West Texas Intermediate (WTI) crude advanced US$2.26, or 3.4%, to US$81.95 a barrel. 

Lower US Crude Inventories Support Prices 

Market sentiment improved after data from the American Petroleum Institute indicated that U.S. crude oil inventories fell by around 3.3 million barrels during the week ended 24 July.  

Although gasoline inventories increased by 918,000 barrels and distillate stocks rose by 355,000 barrels, the decline in crude supplies reinforced expectations of a tighter market. Investors are now awaiting official inventory figures from the U.S. Energy Information Administration for further confirmation. 

OPEC+ Supply Expectations Add Strength 

Oil prices also found support from reports suggesting that OPEC+ may pause planned production increases for three months from October after completing the scheduled return of output previously cut on a voluntary basis.  

A temporary halt in supply growth could further tighten global crude markets and provide additional support to prices. 

Middle East Developments Remain in Focus 

Crude oil markets continue to react to developments surrounding the U.S.-Israeli conflict involving Iran, which has disrupted global oil flows, particularly through the Strait of Hormuz. Although prices fell nearly 5% in the previous session on expectations of renewed diplomatic efforts, uncertainty remains high. 

U.S. President Donald Trump stated that discussions with Iran had been positive but warned that military action could resume if negotiations fail. Meanwhile, Iran denied reports that it is seeking fresh talks with the United States. 

Separately, Oman has reportedly proposed a framework to manage shipping through the Strait of Hormuz, including voluntary transit fees. The proposal, backed by Gulf states, aims to restore stability to one of the world's most important energy trade routes. 

Read More: City Union Bank Q1 FY27 Results: Net Profit Rises 25% to ₹383 Crore, NII Grows 31%! 

Conclusion 

Crude oil prices remain highly sensitive to inventory trends, OPEC+ production decisions and geopolitical developments in the Middle East. Investors are likely to closely monitor official U.S. inventory data and diplomatic progress for further direction in the coming sessions. 

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