Crude Oil Futures Plummet Over 7% Amid Renewed Hopes for US-Iran Talks

Crude oil futures on the Multi Commodity Exchange (MCX) plummeted over 7% to hit a nearly three-week low after renewed hopes of US-Iran negotiations eased concerns over supply disruptions from West Asia.

The August delivery contract for crude oil futures dropped Rs 583, or 7.2%, to Rs 7,530 per barrel, hitting its lower circuit limit during intra-day trade. The September contract also fell Rs 461, or nearly 6%, to Rs 7,378 per barrel amid broad-based selling by investors.

Analysts said the retreat in domestic crude prices reflected a swift unwinding of bullish bets as market participants reassessed the risk of prolonged disruptions to crude supplies from West Asia. They added that both domestic and international crude oil prices would remain highly sensitive to developments surrounding the US-Iran negotiations and shipping activity through the Strait of Hormuz.