Crude oil prices rise as West Asia tensions continue
New Delhi, July 21: Displaying volatility, crude oil prices rose nearly 1 per cent to Rs 8,014 per barrel in futures trade today amid ongoing tensions in West Asia and anxiety over supply disruptions.
Brent was hovering around the USD 90 mark after its sharp run-up.
On the Multi Commodity Exchange, crude oil for August delivery increased by Rs 65, or nearly 1 per cent, to Rs 8,014 in a business turnover of 13,945 lots.
The September contract also advanced Rs 17, or 0.22 per cent, to Rs 7,856 per barrel in 982 lots.
Analysts said crude prices gained after Iran carried out retaliatory attacks against US-linked military installations in Jordan and Bahrain following Washington’s airstrikes, raising concerns over further escalation in West Asia.
In global markets, Brent oil futures for September delivery were marginally lower at USD 88.82 per barrel, while West Texas Intermediate (WTI) crude for the same month was flat at USD 82.43 per barrel.
Anindya Banerjee, Head of Commodity and Currency Research, Kotak Securities said the possibility of diplomatic engagement between the US and Iran, including a proposed 10-day ceasefire, has prevented crude prices from extending gains.
At the same time, Banerjee said the downside remains limited as tanker movement through the Strait of Hormuz has declined, inventory remains strong, and refining margins continue to support fuel markets.
“The next big move in oil depends on whether West Asia tilts towards diplomacy or fresh escalation,” he said.
Market participants are also tracking developments in the Red Sea after Yemen’s Houthis announced an immediate maritime blockade of Saudi Arabia following recent exchanges of fire between the two sides.
