Crude Oil prices experienced a decline of 1.39%, settling at Rs 6,525, as diminishing geopolitical concerns overshadowed the positive inventory data. Market sentiment improved following constructive discussions between the US and Iran in Qatar, which raised hopes for a reduction in tensions surrounding the Strait of Hormuz, a crucial global oil shipping route. Tanker movements through the region have shown a gradual recovery, coinciding with a rise in Iranian crude exports, which have surpassed 40 million barrels following the lifting of a US naval blockade. Furthermore, the record levels of Russian exports have bolstered seaborne crude supplies, heightening apprehensions regarding global availability, even as Tehran continues to assert its demand for administrative control over the strategic waterway.

Fundamental data exhibited a varied landscape. According to the American Petroleum Institute, US crude inventories experienced a decline of 6.072 million barrels in the most recent week, contributing to an eleven-week cumulative draw of 59.4 million barrels in commercial stockpiles. The Strategic Petroleum Reserve decreased by 5.5 million barrels, bringing the total to 325.7 million barrels, while US crude production saw a slight increase to 13.819 million barrels per day. Official EIA data indicated a decline in crude inventories by 6.088 million barrels, bringing the total to 412.1 million barrels, surpassing market expectations.

However, petrol inventories increased by 2.064 million barrels, distillate stocks rose by 3.064 million barrels, and net crude imports moved higher, indicating a decline in demand for refined products. Meanwhile, OPEC crude production declined to 16.13 million barrels per day in May, marking the lowest monthly output in over twenty years. This decrease was attributed to disruptions in Iranian exports and limited Gulf shipments, which countered the intended production increases by OPEC+.

Crude Oil is currently experiencing renewed selling pressure, as evidenced by a 9.95% increase in open interest, which suggests a rise in bearish sentiment among participants. Immediate support is observed at Rs 6,466, succeeded by Rs 6,408, whereas resistance is established at Rs 6,616. A sustained move above this level could trigger further recovery toward Rs 6,708.