Crude Oil Futures Plummet 3% Amid Iran's Strait of Hormuz Proposal
Crude oil futures fell by 3% to Rs 8,572 per barrel on Tuesday as Iran's proposal to reopen the Strait of Hormuz within seven days raised hopes of easing global energy supply disruptions.
The Multi Commodity Exchange (MCX) saw crude oil futures for October delivery decline by Rs 264, or 3%, to Rs 8,572 per barrel. Analysts pointed out that this latest selling came after reports that Iran has proposed reopening the Strait within seven days if the US lifts its blockade on Iranian ports.
Global markets also declined, with Brent oil futures for November delivery falling USD 2.53, or 2.52%, to USD 97.81 per barrel, and West Texas Intermediate (WTI) for the same-month contract declining USD 2.94, or 3.18%, to USD 89.43 per barrel in New York.
Kaynat Chainwala, AVP Commodity Research at Kotak Securities, stated that crude extended losses on Tuesday, with Brent slipping below USD 99 a barrel to the lowest level in two weeks.