Crude oil prices declined by 2.43%, closing at Rs 9,567, as increasing optimism regarding a possible de-escalation in the Middle East impacted market sentiment. Reports indicate that Donald Trump might contemplate terminating U.S. military operations, even in the event that the Strait of Hormuz remains obstructed, with the intention of circumventing an extended conflict.

Simultaneously, Iran has indicated a readiness to cease hostilities contingent upon specific assurances, yet recent assaults on oil tankers in proximity to Dubai underscore that threats to energy infrastructure persist at a heightened level. On the fundamentals side, supply data presented a varied landscape. U.S. crude inventories experienced a notable increase of 6.93 million barrels, significantly surpassing forecasts and indicating the fifth consecutive week of accumulation. Stocks at Cushing experienced a notable increase, while distillate inventories rose unexpectedly.

Nonetheless, the reduction in gasoline inventories provided a degree of support to demand sentiment. Meanwhile, speculative positioning revealed that money managers have augmented their net long positions, suggesting a fundamental bullish sentiment. On a global scale, production trends continue to exhibit dynamism. According to OPEC data, Russian output experienced a slight decline, whereas Kazakhstan exhibited a significant rebound in supply.

From a technical perspective, the market is experiencing long liquidation, as evidenced by a 6.71% decline in open interest to 15,249 lots. Immediate support is identified at Rs 9,332, with a breach possibly resulting in a decline to Rs 9,096. On the upside, resistance is positioned at Rs 9,849, and a breach of this level may propel prices toward Rs 10,130.