MCX Crude Oil Futures Plunge as US-Iran Talks Ease Global Supply Fears

Crude oil futures on the Multi Commodity Exchange (MCX) plummeted over 7% to nearly three-week lows, tracking a sharp decline in global oil benchmarks after renewed hopes of US-Iran negotiations eased concerns over supply disruptions from West Asia.

The August contract for crude futures fell Rs 583, or 7.2%, to Rs 7,530 per barrel, while the September contract dropped by nearly 6% to Rs 7,378 per barrel amid broad-based selling by investors.

Analysts attributed the retreat in domestic prices to a swift unwinding of bullish bets as market participants reassessed the risk of prolonged disruptions to crude supplies from West Asia.

The US-Iran talks have eased concerns over supply disruptions through the Strait of Hormuz, a critical chokepoint that carries about one-fifth of global energy shipments, according to Aamir Makda, Commodity & Currency Analyst at Choice Broking.