Geopolitical Turmoil Elevates Global Crude Oil Prices

Crude oil prices are surging amidst geopolitical tensions and supply chain disruptions in West Asia. Brent Crude has climbed past USD 116 per barrel, with further escalation likely due to ongoing instability and attacks on energy infrastructure, delaying the reopening of critical transit routes like the Strait of Hormuz.

Crude oil prices have surged as geopolitical tensions in West Asia escalate, causing supply chain disruptions. On Thursday, crude oil prices rose Rs 74 to Rs 9,067 per barrel in futures trade. Brent Crude futures soared past USD 116 per barrel in international trade following attacks on essential energy infrastructure in the region.

On the Multi Commodity Exchange, crude oil for April delivery increased by Rs 74, or 0.82%, to reach Rs 9,067 per barrel in a trade volume of 19,221 lots. In the international market, Brent Oil futures for May delivery rose USD 9.61, nearly 9%, to USD 116.99 per barrel. West Texas Intermediate increased by 1.58% to USD 96.97 per barrel in New York.

As tensions rise, the risk premium is likely to stay elevated, with the market facing uncertainty until the situation de-escalates. Both Saudi Arabia and Qatar are navigating challenging export scenarios due to disruptions along the Strait of Hormuz, further contributing to price volatility.

(With inputs from agencies.)