Crude oil rebounds above $76 as Hormuz risks ease

Crude oil futures climbed above $76 per barrel as renewed US-Iran diplomacy and progress toward reopening the Strait of Hormuz eased concerns over major supply disruptions. Prices have still declined by more than $10 this week as the geopolitical risk premium faded. However, a surprisingly tight US physical market offered support, with EIA data showing a sharp 7.17 million-barrel draw in crude inventories to 404.5 million barrels, around 6% below the five-year seasonal average. Refinery utilization rose to 97.2%, with crude processing reaching 17.3 million barrels per day. MCX August crude oil futures gained over 0.5% to Rs 7,251 per barrel. In contrast, the API reported a 2.69 million-barrel inventory build for the week ended July 30.

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