Oil extends rally on supply concerns and inventory drawdown

Crude oil prices extended their gains above $85 per barrel on Thursday as a sharp decline in U.S. crude inventories reinforced expectations of tightening supply, with government data showing stockpiles fell by 7.2 million barrels last week to their lowest seasonal levels in years. The bullish sentiment was further strengthened by renewed geopolitical tensions after the United States launched fresh air strikes against Iran, while Tehran's continued insistence on maintaining control of the Strait of Hormuz kept concerns over potential supply disruptions firmly in focus. Reflecting the upbeat global trend, MCX August crude oil futures traded more than 1% higher at around ₹8,225 per barrel.

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