Amid the escalating West Asia War, crude oil prices once again rebounded by Rs 261 to Rs 8,981 per barrel in futures trade on Tuesday. The surge happened amid firm global trends and uncertainty over supply disruptions due to the ongoing conflict in West Asia.
As reported by PTI, crude oil on the Multi Commodity Exchange (MCX) for March delivery increased by Rs 261, or 3 per cent, to Rs 8,981 per barrel in a business turnover of 12,183 lots.
However, earlier on Monday, it declined by Rs 332, or nearly 4 per cent, to close at Rs 8,720 per barrel.
The April contract also appreciated by Rs 305, or 3.52 per cent, to Rs 8,978 per barrel in 13,778 lots. In the previous session, it had dipped by Rs 270, or 3 per cent, to settle at Rs 8,673 per barrel on the MCX.
Expert opinion
Analysts, while expressing their views on crude oil prices, said that the rebound after a sharp correction in the previous session continues to weigh on evolving geopolitical developments and their potential impact on global oil supply.
In the international market, Brent oil futures for May delivery gained USD 3.32, or 3.31 per cent, to USD 103.53 per barrel, while West Texas Intermediate (WTI) crude for the May contract went up nearly 4 per cent to USD 96.09 per barrel in New York.
Jigar Trivedi, Senior Research Analyst at IndusInd Securities, expressing his views on crude oil prices amid the crisis, said, “WTI crude futures rose toward USD 96 per barrel after losing more than 5 per cent in the previous session, as investors continued to assess the impact of the Middle East conflict on global supply,” as cited by PTI.
Tankers safely pass the Strait of Hormuz
On Monday, oil prices declined sharply after several tankers safely passed through the Strait of Hormuz, easing concerns about a prolonged disruption in one of the world`s most critical oil transit routes.
However, volatility persisted as geopolitical tensions remained elevated, with markets closely monitoring the situation in the region.
In a bid to stabilise energy markets, the United States is preparing to release the first tranche of emergency crude reserves. The International Energy Agency (IEA) has also signalled readiness to further tap global stockpiles, as per PTI.
(With inputs from PTI)