Crude Oil Futures Recover Amid Renewed West Asia Supply Jitters

New Delhi: Crude oil prices reversed early losses to trade higher at Rs 8,224 per barrel on Thursday, tracking gains in global benchmarks amid fresh US airstrikes on Iran, which revived concerns over supply disruptions in West Asia.

On the Multi Commodity Exchange (MCX), crude futures for the August delivery climbed by Rs 110, or 1.36 per cent, to Rs 8,224 per barrel.

The September contract also advanced Rs 75, or 1 per cent, to Rs 7,973 per barrel on the MCX.

Traders said crude prices in the domestic futures market rebounded in line with global benchmarks as fresh US airstrikes against Iran revived concerns over supply disruptions in West Asia, prompting market participants to build fresh positions.

In the international markets, Brent oil futures for September delivery rose nearly 2 per cent to trade at USD 92.33 per barrel on the Intercontinental Exchange.

Additionally, Comex West Texas Intermediate (WTI) crude for September contract advanced by nearly 1 per cent to USD 85.03 per barrel on the New York Mercantile Exchange.

Brent continues to trade near USD 90 and WTI around USD 85 per barrel, with product flows through Strait of Hormuz down to a fraction of normal and Russian refinery outages compounding the squeeze, said Anindya Banerjee, Head of Commodity and Currency Research at Kotak Neo (formerly Kotak Securities).

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Analysts said crude oil prices recovered after the US military launched a fresh wave of strikes on Iran in retaliation for attacks on American military installations in Jordan, raising fears of a renewed escalation in the region.

However, gains were capped after an LNG tanker operated by QatarEnergy exited the strategic shipping lane, while reports of continuing negotiations between the US and Iran tempered concerns over a prolonged disruption in crude supplies.

Earlier, the US and Saudi Arabia conducted joint strikes against Iran-backed militias in Iraq.

(Disclaimer: Except for the headline, this article has not been edited by HDFC Sky editorial team and is auto-generated from PTI feed.)