Rising Oil Prices Supported by Decline in US Inventories and Middle East Tensions

Oil prices witnessed an increase during the session on Thursday, June 26, following a recovery path after significant losses earlier in the week, as the decline in US inventories and developments in the Middle East boosted prices.

Benchmark crude recorded gains of nearly 1% on Wednesday, supported by a sharp drop in US inventories exceeding expectations, according to data from the US Energy Information Administration. The data showed a decrease in crude oil inventories by 5.8 million barrels during the week ending on June 20, surpassing analysts' expectations of only a 797,000 barrel decline. Gasoline inventories also unexpectedly decreased by 2.1 million barrels, compared to expectations of a 381,000 barrel increase.

Investors remained cautious due to developments surrounding the ceasefire between Iran and Israel, in addition to US sanctions policies towards Tehran. In this regard, analyst Yuki Takashima from "Nomura Securities" told Reuters: "Investors are still cautious and seeking clarity on the ceasefire between Iran and Israel, with market focus now shifting to OPEC+ production levels."

Meanwhile, US President Donald Trump confirmed that his country has not backed down from its "maximum pressure" policy on Iran, including restrictions on its oil exports, but he hinted at the possibility of easing sanctions to support reconstruction.

At the end of the trading sessions, Brent crude futures rose by 0.4% to $67.93 per barrel, while US crude futures increased by 0.5% to reach $65.21 per barrel.