Brent Holds Near $100 Amid Geopolitical Tensions, Disruptions Warning
Crude oil prices fell by 2% on Friday, as traders booked profits after a recent rally. The global benchmark Brent hovered near $100-a-barrel mark amid geopolitical tensions in West Asia kept supply concerns alive.
The Multi Commodity Exchange (MCX) saw crude for the August delivery decline by ₹148, or 1.64%, to ₹8,876 per barrel in a business turnover of 17,232 lots. The September contract also eased ₹154, or 1.79%, to ₹8,426 per barrel in 2,125 lots.
Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities, said Brent crude prices are holding near $100 after crossing the level for the first time in two months this week. He attributed the rally to Yemen's Houthi attacks on two Saudi oil tankers in the Red Sea, as well as US President Donald Trump's threat of a massive strike on Iran and Kazakhstan's suspension of exports through the Caspian pipeline following drone strikes.
Investors are watching the Bab el-Mandeb Strait, warning that any significant disruption to shipping through the Red Sea could propel Brent towards $120 per barrel. Global oil inventories have been depleted by months of continuous drawdown.