US Airstrikes Send Crude Oil Prices Soaring Amid West Asia Supply Jitters
Crude oil futures have rebounded amid concerns over supply disruptions in West Asia following fresh US airstrikes on Iran. The Brent and WTI prices have climbed as a result of geopolitical tensions. On Thursday, crude oil prices rose to Rs 8,224 per barrel on the Multi Commodity Exchange (MCX), up by Rs 110 or 1.36% for the August delivery.
The September contract also advanced by Rs 75 or 1% to Rs 7,973 per barrel on the MCX. Traders said that crude prices in the domestic futures market rebounded in line with global benchmarks as fresh US airstrikes against Iran revived concerns over supply disruptions in West Asia.
Anindya Banerjee, Head of Commodity and Currency Research at Kotak Neo, stated that Brent continues to trade near USD 90 and WTI around USD 85 per barrel. He added that product flows through the Strait of Hormuz are down to a fraction of normal and Russian refinery outages are compounding the squeeze.
The US military launched a fresh wave of strikes on Iran in retaliation for attacks on American military installations in Jordan, raising fears of a renewed escalation in the region. However, gains were capped after an LNG tanker operated by QatarEnergy exited the strategic shipping lane, while reports of continuing negotiations between the US and Iran tempered concerns over a prolonged disruption in crude supplies.