Crude oil futures eased 2 per cent to Rs 8,876 per barrel on Friday as traders booked profits following the recent rally. However, global benchmark Brent continued to trade close to the USD 100 per barrel level, with escalating geopolitical tensions in West Asia sustaining concerns over potential supply disruptions.
On the Multi Commodity Exchange (MCX), crude for August delivery fell Rs 148, or 1.64 per cent, to Rs 8,876 per barrel, as per reports. The September contract also slipped Rs 154, or 1.79 per cent, to Rs 8,426 per barrel in 2,125 lots. According to traders, profit-booking capped gains after crude posted its strongest weekly rally in months on concerns over possible supply disruptions.
In the global market, Brent oil futures for September delivery traded marginally lower at USD 100.28 per barrel on the Intercontinental Exchange. On the other hand, West Texas Intermediate (WTI) crude for the same contract month declined 0.53 per cent to USD 91.70 per barrel on the New York Mercantile Exchange.
West Asia Tensions Remain Elevated
Tensions in West Asia continue to remain sensitive as the United States President Donald Trump has warned of "major military punishment" against Iran and the Iran-backed Houthi movement after the Yemeni group attacked two Saudi oil tankers in the Red Sea, raising fears of a wider conflict in the Middle East.
The Houthi rebels said they had targeted the tankers as part of what they described as a naval blockade on Saudi Arabia. The attacks have heightened concerns over the security of key global shipping routes, with tensions already high around the Strait of Hormuz.
Responding to the attacks, Trump said the United States would hold Iran responsible for any future Houthi strikes, describing the group as a proxy of Tehran. "If they do this again, the US will hold Iran responsible... and major military punishment will be inflicted upon Iran and, of course, the Houthis themselves," Trump said in a post on social media. |
