Oil slips near $69 as US-Iran peace progress eases supply fears

Crude oil prices remained under pressure on Thursday, with prices slipping near $69 per barrel and extending losses for a fourth consecutive session as improving US-Iran peace efforts eased concerns over potential supply disruptions. The decline has nearly erased all gains recorded since the onset of the Middle East conflict. Market sentiment remained bearish despite the US Energy Information Administration (EIA) reporting a larger-than-expected crude inventory draw of 6.1 million barrels last week. Earlier, the American Petroleum Institute (API) also reported a decline in crude inventories. Adding to the pressure, the US dollar index hovered near 101.5, its highest level in more than a year, as investors continued to price in the possibility of further Federal Reserve rate hikes. On the domestic front, MCX July crude oil futures traded nearly 1% lower at Rs 6,612 per barrel. Traders are now closely monitoring the upcoming US PCE inflation report, along with GDP, durable goods orders and jobless claims data, for further clues on the outlook for interest rates and energy demand.

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