Crude oil prices stabilized mid-European trading on Wednesday, June 25, after sharp declines of more than 8% earlier in the week following the announcement of a ceasefire between Israel and Iran, the return of calm, and a decline in energy sector concerns. Crude oil prices stabilized at their lowest levels since June 10. The truce and Trump’s statements that China can now continue buying Iranian oil contributed to the sharp decline in crude oil prices, which had reached their highest levels since January last week. Markets are awaiting the US Energy Information Administration’s inventory figures this evening, with Brent crude rising by about 1.03%, trading at $67.83 per barrel, while US crude (NYMEX) is trading at $65.03 per barrel, up about 1.01%. The American Petroleum Institute’s report released Tuesday showed a 4.3 million barrel decline in inventories in the week ending June 20, compared to expectations for a 600,000-barrel decrease. Gasoline inventories rose by about 764,000 barrels, while distillate inventories, which include heating oil and diesel, fell by about 1.026 million barrels.
Markets are awaiting the U.S. Energy Information Administration’s report on Wednesday, which is estimated to have dropped by about 1.2 million barrels.
With the temporary end of the conflict in the Middle East, energy traders are focusing on the surplus, crude supply, and economic fundamentals rather than geopolitical factors. Increased supply from producers inside and outside the OPEC+ alliance is expected to outpace demand growth, with OPEC+ scheduled to decide on a further production increase in August at its meeting on July 6.