Crude Oil Futures Plunge Nearly 8% Amid Easing West Asia Tensions

Crude oil futures plummeted nearly 8% to Rs 7,939 per barrel on Monday amid easing tensions in West Asia, triggering a sell-off in global oil markets and dragging domestic prices lower.

On the Multi Commodity Exchange (MCX), crude futures for August delivery fell Rs 665, or 7.73%, to Rs 7,939 per barrel in a business turnover of 12,994 lots.

The September contract also tumbled Rs 537, or nearly 7%, to Rs 7,710 per barrel in a business turnover of 1,865 lots.

Analysts attributed the sharp decline to losses in global crude oil markets after Washington and Tehran signaled a pause in military escalation. 'MCX crude oil futures have continued their downward momentum in the domestic market on Monday amid easing concerns over supply disruptions in West Asia,' said Aamir Makda, Commodity & Currency Analyst, Technical Research, Choice Broking.

In international markets, Brent crude futures for September delivery fell USD 7.66, or 8%, to USD 89.12 per barrel on the Intercontinental Exchange. West Texas Intermediate (WTI) crude for September delivery declined USD 6.93, or nearly 8%, to USD 82.38 per barrel on the New York Mercantile Exchange.

However, analysts cautioned that the latest sell-off reflects expectations of de-escalation rather than a lasting resolution. 'Tanker movements through the Strait of Hormuz remain well below normal,' said Anindya Banerjee, Head of Commodity and Currency Research, Kotak Securities.