New Delhi, Sep 10: Global crude oil prices remained elevated on Thursday, with Brent crude holding above the $100-a-barrel mark as renewed Iran-US attacks on shipping raised fresh concerns about disruptions to global oil supplies.
Brent crude was trading around $101 a barrel, while US West Texas Intermediate (WTI) crude remained near $96. The latest rise comes as tensions around the Strait of Hormuz, one of the world’s most important oil transit routes, have intensified.
The recent attacks on tankers and other vessels have added to concerns that oil shipments from the Persian Gulf could face further disruption. The Strait of Hormuz normally handles a significant share of global oil and gas shipments, making any prolonged disruption a major concern for energy markets.
The supply concerns have pushed up crude prices and increased the risk of further volatility in the international oil market. Brent had already settled above $100 on Wednesday, marking its highest close since late May.
In India, MCX crude opened with a mild gain and was trading around Rs 9,140, with the contract testing the Rs 9,150-Rs 9,200 resistance zone after its recent rally.
A sustained move above Rs 9,200 could take MCX crude towards Rs 9,350-Rs 9,400. On the downside, Rs 9,000-Rs 8,950 is seen as an immediate support zone, followed by Rs 8,800-Rs 8,750.
Market indicators suggest that crude remains firmly in an upward trend, although the sharp rally has also increased the possibility of short-term profit-taking or consolidation.
WTI crude was trading above $96 after easing from levels close to $98. A sustained move above $98 could strengthen the bullish momentum and bring the $100 level into focus, while support remains around $95-$94 and then $92-$91.
For India, sustained high crude prices could increase import costs and put pressure on fuel-related expenses, transportation costs and inflation. The situation also remains important for the rupee and the country’s overall external balance, given India’s dependence on imported crude oil.
With tensions around major shipping routes continuing, the crude market is likely to remain highly sensitive to developments in the Middle East in the near term.
