Crude Oil Prices Edge Up Amid Strong U.S. Inventory Draw, Truce Eases Supply Fears

On June 26, 2025, crude oil prices inched higher during Asian trading session, supported by a stronger-than-expected decline in U.S. crude inventories, which signaled robust demand. However, gains were capped as the Israel-Iran ceasefire appeared to be holding, easing concerns over potential Middle Eastern supply disruptions.

Despite Thursday’s uptick, crude prices were still reeling from steep losses earlier in the week. On Monday evening, Trump announced a ceasefire between Israel and Iran, which took effect early Tuesday. With the truce seemingly holding, fears of supply shocks from the region have subsided.

By 21:17 ET (01:17 GMT), Brent crude futures had risen 0.4% to $67.93 per barrel, while West Texas Intermediate (WTI) crude climbed 0.5% to $63.76 per barrel. At 09:05 AM IST, Brent crude futures were trading up 0.33% to $67.90

U.S. Crude Stockpiles Post Major Decline for Second Consecutive Week

Data released on Wednesday by the U.S. Energy Information Administration showed a significant drawdown of 5.8 million barrels in the week ending June 20, far exceeding forecasts of a 1.2 million-barrel decrease. This follows an even larger 11.5 million-barrel draw reported the previous week.

Inventories of distillates and gasoline also posted sharp declines, reinforcing signs that fuel demand remains strong—particularly with the summer travel season in full swing.

Middle East Tensions Ease as Ceasefire Holds

Despite the encouraging inventory data, oil prices remained under pressure this week due to easing geopolitical risks. The ceasefire between Israel and Iran reduced the likelihood of immediate supply disruptions in the oil-rich region.

Also Read: What Does Gift Nifty Suggest About Market Opening on June 26, 2025?

President Trump refrained from imposing new sanctions on Iran’s oil sector, signaling a possible shift in policy. He even hinted at a willingness to relax existing sanctions to support reconstruction efforts in Iran, ahead of scheduled nuclear talks next week.

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