Monday**;s steep decline in crude prices signals a broader shift in market sentiment rather than a temporary correction. Compared with Friday**;s close, Brent and WTI fell *.* per cent and *.* per cent, respectively, as traders continued to unwind positions built around geopolitical uncertainty. From the peaks recorded in mid-May, both benchmarks have now lost nearly a quarter of their value. The magnitude of the decline suggests that investors increasingly believe the risk of prolonged supply disruptions in the Middle East has diminished, reducing the premium that had been embedded in oil prices for several months.
India remains heavily dependent on overseas crude supplies, with imports accounting for nearly **.* per cent of its total oil consumption. As a result, fluctuations in global oil prices and disruptions to international supply chains can have a significant impact on the country**;s energy costs and broader economy.
