Crude Oil Futures Reach New High at Rs 9,171 per Barrel Amid Global Market Optimism, Brent Surpasses USD 106

Crude Oil Prices Rise Amid Escalating Tensions in West Asia

Key Highlights

• Crude oil prices on the Multi Commodity Exchange (MCX) rose by Rs 119 (1.31%) to Rs 9,171 per barrel for March delivery, with a business turnover of 12,745 lots.
• Brent Oil futures for May delivery gained USD 2.82 (2.73%) to USD 105.96 per barrel, while West Texas Intermediate (WTI) crude for the May contract went up by 2.36% to USD 99.13 per barrel in New York.

Market Analysis

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Crude oil prices remain elevated due to supply concerns stemming from the ongoing conflict in West Asia, which has disrupted oil flows through the Strait of Hormuz, a key passage for global energy shipments. Analysts note that the conflict has prompted threats of retaliation from Tehran, underscoring the risk that the conflict could widen and disrupt supplies from one of the world's most critical oil-producing regions.

International Market Trends

In the international market, geopolitical tensions continue to dominate sentiment, with traders weighing the possibility of further escalation against diplomatic efforts to stabilize shipping in the region. The EU's foreign policy chief, Kaja Kallas, has encouraged member states to redirect the bloc's Red Sea naval mission to help restart oil and gas shipments in the Strait of Hormuz.

Supply Risks Remain High

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The geopolitical situation remains tense after reports that the United States and Israel conducted fresh airstrikes on a key Iranian export terminal over the weekend. This has prompted concerns that the conflict could widen and disrupt supplies from the region, with Manav Modi, Analyst- Commodities at Motilal Oswal Financial Services Ltd, noting that crude oil prices remain elevated above USD 100 per barrel despite diplomatic efforts to stabilize shipping in the region.