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US Oil Update: Crude Benchmarks Hit 1-Week Low

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Global oil prices hit a more than one-week low on Tuesday on ceasefire hopes in the Middle East as traders awaited the US crude inventory data for clues on supply and demand.

Front-month West Texas Intermediate crude futures fell 2.2% to $89.32 per barrel, while Brent futures were down 1.7% to $92.63/bbl.

"Oil prices eased to a one-week low on Tuesday as easing tensions in the Middle East improved sentiment and raised hopes that the current disruption to regional energy exports may eventually begin to unwind," said Zaheer Anwari, CEO at the Revacy Fund.

Israeli Prime Minister Benjamin Netanyahu reportedly confirmed that the country is holding its fire against Iran for the time being.

This aligned with an earlier announcement from Tehran's central military command, Khatam al-Anbiya, stating that its strikes against Israel had ceased, though it warned operations would immediately resume if it struck Lebanon.

Sentiment was further stabilized by a Truth Social post from US President Donald Trump, who claimed both combatants are actively seeking to formalize an immediate ceasefire.

On the demand side, India's domestic fuel consumption stood at 19.93 million metric tons in May, down from 21.31 million metric tons for the same month last year, according to data shared by the oil ministry's Petroleum Planning and Analysis Cell on Saturday.

However, it was higher than the figures in April, when consumption stood at 19.47 million metric tons.

Meanwhile US crude exports surged to a record 5.6 million barrels per day in May, fueled by Strategic Petroleum Reserve releases and elevated Gulf of Mexico output, though a slowdown is forecast in June, Kpler strategists said in a Monday note.

The market now awaits crude inventory data due on Wednesday to be released by the US Energy Information Administration.

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