Crude Oil Prices Extend Gains for Eighth Consecutive Day on Brent Crude Levels Above $110 per Barrel

Oil Prices Continue to Rise Amid US-Iran War Tensions

Oil prices climbed on Wednesday, 29 April, extending their multi-day rally, as reports suggested the US would continue its blockade of Iranian ports, potentially prolonging supply disruptions in the key Middle East producing region. The blockade has been a major concern for oil markets, with the International Energy Agency describing it as the largest supply shock on record.

Brent Crude Futures Rise

Brent crude futures for June rose 52 cents, or 0.47%, to $111.78 per barrel, marking an eighth consecutive day of gains. The June contract expires on Thursday, while the more actively traded July contract was up 0.4% at $104.84. In contrast, US West Texas Intermediate (WTI) crude for June advanced 57 cents, or 0.57%, to $100.50 per barrel, following a 3.7% jump in the previous session and rising in seven of the past eight days.

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Indian Oil Market Reacts

Back home, crude oil prices on Multi Commodity Exchange (MCX) witnessed a reverse rally. MCX crude oil prices fell over 0.64% to ₹9,426 per barrel in early morning session on Wednesday.

US-Iran Talks Stalled

US President Donald Trump has directed aides to prepare for a prolonged blockade, with the US and Iran holding talks aimed at ending hostilities that have disrupted Middle East energy supplies. According to a report by The Wall Street Journal, Trump has favored maintaining pressure on Iran’s economy and oil exports by restricting maritime traffic to and from its ports, viewing alternative measures as riskier.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Impact on Global Oil Market

The blockade is intensifying pressure on Tehran, with the country quickly running out of crude storage capacity, raising the likelihood of deeper production cuts, according to a Bloomberg report. Since the conflict erupted in late February, the Strait of Hormuz has become nearly impassable, disrupting the flow of crude oil, natural gas, and refined products, and pushing energy prices higher.

United Arab Emirates Exits OPEC

Amid the turmoil, the United Arab Emirates has announced its decision to exit OPEC next month, ending a six-decade-long association. The country stated that the supply crunch caused by the war demands greater flexibility to meet market needs, without being limited by the group's collective decision-making framework.

Crude Oil Price Outlook

According to Ponmudi R, CEO of Enrich Money, crude oil prices continue to stay elevated, with Brent trading in the $105-$110 per barrel range, posing a key risk to inflation and weighing on overall market sentiment. On the technical outlook, Ponmudi said that MCX Crude Oil is currently trading near the ₹9,200 zone, consolidating within a volatile ₹8,900-₹9,200 range amid mixed macro cues.

Technical Analysis

A sustained break above ₹9,275 could push the pair toward ₹9,350-₹9,470. On the downside, a break below ₹8,950 could expose ₹8,800-₹8,750, with deeper losses possible on sustained selling. The near-term bias leans bullish, with a decisive directional move contingent on developments in the Strait of Hormuz.