Global crude oil prices registered sharp weekly losses, with Brent crude settling near $79.78 per barrel after an 8% decline, while WTI hovered around $77.59 per barrel despite a minor daily rebound.
The downturn was driven by stalled U.S.–Iran peace talks in Switzerland, renewed hostilities in the Middle East, and fragile supply-demand dynamics that continue to unsettle markets.
Analysts noted that tanker traffic through the Strait of Hormuz remains uncertain, with intermittent disruptions adding to volatility in global energy flows.
The International Energy Agency (IEA) reported a year-on-year decline of 1.1 million barrels per day in global demand, with Q2 deliveries plunging by nearly 5 million barrels per day.
OECD government inventories have fallen to their lowest levels since 1990, reflecting accelerated emergency drawdowns amid supply concerns.
Market forecasts suggest Brent crude may trade within the $75–$90 band in the short term, though Citi projects a possible slide to $60–65 per barrel by early 2027.
For India, the decline could temporarily ease import bills and inflationary pressures, though policymakers remain cautious given the geopolitical risks surrounding Gulf energy routes.
