Page 6 - Policy Economic Report- June'26

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Trading Commission (CFTC). The decrease in net long positions was driven by a decline in long positions
of 24,377 lots, or 10.5%, to 208,014 contracts. During the same period, short positions fell by 7,042 lots,
or 5.7%, to 116,851 contracts.

Crude spot prices declined in May amid expectations of improving prompt supply availability and softer
refinery demand, particularly in Asia, where persistent refinery constraints weighed on spot market
buying activity. Global refinery intake levels were nearly 7 mb/d below those observed in January and
February. North Sea Dated and Dubai first-month prices dropped by $13.60/b and $4.27/b, m-o-m,
respectively, to average $107.80/b and $101.29/b. However, WTI spot prices rose slightly, m-o-m, finding
support amid an ongoing draw in US crude stocks, strong US crude exports, and firm US refinery intakes.
WTI's first-month price rose by $0.53/b, m-o-m, to average $99.16/b.

Natural Gas spot prices at the US Henry Hub benchmark averaged $2.94 per million British thermal units
(MMBtu) in May 2026. Henry Hub's natural gas prices rebounded in May after three consecutive months
of declines. They rose by 5.8%, m-o-m, on the back of higher LNG demand amid supply disruptions from
the Middle East. Moreover, seasonal maintenance at several export terminals limited export capacity,
adding upward pressure to prices. However, price gains were limited by higher storage levels amid the
injection season. According to data from the US Energy Information Administration (EIA), average weekly
underground storage rose by 16.2%, m-o-m. Prices were down by ~5.8%, y-o-y.

Overall, while the global economy continues to face considerable uncertainty arising from geopolitical
tensions, energy market volatility, climate-related risks, and slowing investment, India's strong domestic
demand, sound macroeconomic fundamentals, continued policy reforms, and expanding manufacturing
and clean energy sectors position the country favourably to sustain high and inclusive economic growth
over the medium term. Continued investment in infrastructure, technology, energy security, human
capital, and climate resilience will remain critical to strengthening India's competitiveness and supporting
its long-term development objectives.

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