Crude Oil Price Volatility Amid Conflict

Market Overview

Crude oil is one of the world's most actively traded commodities, with a daily consumption of over 100 million barrels. Its price movements often reflect shifts in the global economy and geopolitics. Recent tensions between Iran and the US have led to increased volatility in the oil markets.

Price Movement

Read also: Gold and Silver Prices Decline Amid Strengthening Dollar and Inflation Concerns

WTI crude oil has delivered a strong gain over the past year, rising from $67.04 per barrel on March 12, 2025, to about $83.40 per barrel as of March 11, 2026, an increase of roughly 24.4 percent. The majority of the annual rise has occurred in recent days, with a sharp rally emerging in early March. Since the conflict between Iran and the US began on February 28, 2026, crude oil price has jumped from about $66.65 per barrel to $83.40, a surge of nearly 25 percent.

Investment Options

Investors have multiple options to invest in crude oil, depending on their willingness to take risks, investment duration, and understanding of the market. These options include:

• Directly trading oil derivatives
• Investing through funds or shares of energy companies
• Oil Exchange-Traded Funds (ETFs) that track oil prices or oil-related indices
• Trading on the Multi-Commodity Exchange of India Limited (MCX)

Read also: Gold and Silver Prices in India: A Review of Current Rates Across Major Cities

Oil ETFs

Oil ETFs provide a simpler way for retail investors to gain exposure to crude oil without directly trading futures. These funds may track crude oil benchmarks, such as WTI crude oil or Brent crude oil.

Shares

Investors can also buy shares in oil companies that explore oil, produce it, and refine it. Major energy companies, such as ExxonMobil, Chevron, and BP, often benefit when oil prices rise, giving investors indirect exposure to movements in crude oil prices.

Trading on MCX

The most common method of investing in oil futures contracts enables investors to trade on their expectations of future crude oil price movements. Experienced traders prefer this method because they can manage risk by drawing on their experience with the unpredictable nature of futures markets and their margin requirements.

Risks and Considerations

Crude oil investments require careful assessment of several global factors, including global supply-demand dynamics, geopolitical tensions, OPEC decisions, and currency movements. Trading crude oil futures on the MCX carries significant risk, and investors should be aware of the leverage and margin requirements involved.