Commodities
West Asia Tensions Ease: Crude Oil Prices Plummet 6%
Crude oil futures plummeted over 6% on Monday as hopes for US-Iran talks eased tensions in West Asia, reducing the risk premium and fears of supply disruptions.
The sharp correction mirrored weakness in overseas markets, where market participants pared risk positions amid expectations that diplomatic efforts between the US and Iran could avert a prolonged disruption of oil supplies through the Strait of Hormuz.
On the Multi Commodity Exchange (MCX), crude oil futures for August delivery slumped Rs 512, or 6.31%, to Rs 7,601 per barrel, hitting its lower circuit level in intra-day trade.
The September contract also fell sharply by Rs 415, or 5.3%, to Rs 7,424 per barrel amid broad-based selling by investors.