Crude oil futures experienced a decline on Friday morning following reports indicating that the United States and Iran have agreed to extend the ceasefire by 60 days. However, no official confirmation has been provided by US President Donald Trump or Iranian officials.
As of 10:03 AM on Friday, August Brent oil futures were priced at $91.75, a decrease of 1.02 percent, while July West Texas Intermediate (WTI) crude oil futures traded at $87.79, down by 1.25 percent. In India, June crude oil futures were listed at ₹8406 on the Multi Commodity Exchange (MCX), reflecting a decline of 1.53 percent from the previous close of ₹8537. July futures also fell to ₹8262 from ₹8378, marking a decrease of 1.38 percent.
During a press briefing in Washington, US Vice President JD Vance addressed ongoing discussions with Iran concerning its enriched uranium stockpile and enrichment activities. “I can’t guarantee that we’re going to get there, but right now I feel pretty good about it,” he remarked.
In their Friday Commodities Feed, Warren Patterson, Head of Commodities Strategy at ING Think, and Ewa Manthey, a Commodities Strategist, observed that the oil market continues to trend lower, driven by increasing optimism over a potential agreement between the US and Iran. Reports suggest the two nations have come to a memorandum of understanding (MoU) that would not only extend the ceasefire but also enable the reopening of the Strait of Hormuz, although Trump must still endorse this.
The potential reopening of the strait could provide immediate relief to the oil market by allowing tankers to navigate the Persian Gulf; however, this recovery remains uncertain. Shipowners may hesitate to send vessels into the Persian Gulf due to fears of renewed conflict, which could leave ships trapped. Additionally, upstream oil production has significantly declined since the onset of the war as producers have curtailed output to cope with storage limitations. Consequently, any recovery in upstream production is expected to be slow rather than swift.
The analysts indicated that the market has increasingly factored in a resolution this week and suggested that confirmation of a deal to reopen the strait could limit significant declines in prices, particularly in the early period following a ceasefire.
“The market is more vulnerable now than it was pre-war, given the substantial inventory reductions observed over the last three months,” they added. A tighter market implies that oil prices are likely to remain volatile, and a gradual recovery in supply suggests that a return to surplus in the oil market is not imminent.
On the data front, the weekly petroleum status report from the US Energy Information Administration (EIA) indicated a drop in US crude oil inventories for the week ending May 22. EIA reported a decrease of 7.9 million barrels, leaving US commercial crude oil inventories at 445 million barrels—approximately 2 percent below the five-year average for this time of year.
In terms of gasoline inventories, there was a reduction of 1.5 million barrels, placing them 5 percent below the five-year average. Conversely, distillate fuel inventories increased by 0.4 million barrels but remained about 9 percent below the five-year average.
Total products supplied in the US over the past four weeks averaged 20.2 million barrels per day, up by 3.1 percent compared to the same period last year. Specifically, motor gasoline supplied averaged 8.9 million barrels per day, an increase of 0.5 percent, while distillate fuel supply averaged 3.6 million barrels per day, marking a 1.4 percent rise. Jet fuel supply recorded a 1 percent increase compared to the same four-week period of the previous year.
In other commodities, June natural gas futures traded at ₹316.80 on MCX, up by 0.92 percent from the previous close of ₹313.90. On the National Commodities and Derivatives Exchange (NCDEX), June guargum contracts were trading at ₹11480, an increase from the previous close of ₹11385, which is a rise of 0.83 percent. Meanwhile, June turmeric (farmer polished) futures were listed at ₹16300 on NCDEX, up by 0.52 percent from the previous close of ₹16216.
Published on May 29, 2026.
