Crude oil futures zoom over 26% to hit record high of INR 10,549/barrel
Crude oil prices surged more than 26 per cent on Monday to hit a lifetime high of INR 10,549 per barrel in futures trade amid disruptions in global energy supply due to intensified West Asia crisis.
On the Multi Commodity Exchange (MCX), crude oil for March delivery soared by INR 2,186, or 26.13 per cent, to touch a fresh high of INR 10,549 per barrel from Friday’s close of INR 8,363 per barrel.
The price for April contract also appreciated by INR 2,158, or 26.91 per cent, to a new peak of INR 10,177 per barrel against INR 8,019 per barrel in the previous session. During the session, both contracts hit their respective upper circuit limit on the MCX.
MCX Crude oil March contract has already touched upper circuit. On the other hand, this level will accelerate upside momentum in the crude oil price towards INR 11,300 per barrel in the upcoming sessions, Aamir Makda, Commodity & Currency Analyst, Choice Broking, said.
In the international markets, crude oil prices surged above $100 per barrel for the first time since 2022 as the war involving the US, Israel and Iran entered its second week, fuelling concerns over global inflationary pressures. West Texas Intermediate (WTI) crude oil futures for April delivery gained $28.58, or 31.44 per cent, to $119.48 per barrel, while Brent Crude for the May contract climbed $26.71, or 28.82 per cent, to hit an intraday high of $119.40 per barrel in New York.
Crude oil prices in the overseas markets surged after oil tankers were blocked from the Strait of Hormuz, prompting several Middle Eastern producers to curb crude output, Jigar Trivedi, Senior Research Analyst at IndusInd Securities, said.
The conflict has already halted roughly a fifth of global crude and natural gas supply as Iran targets ships in the vital shipping route, he added.Anindya Banerjee, Head of Commodity and Currency Research, Kotak Securities, said investors should also monitor the escalation ladder in the West Asian conflict.
“The first stage is the current disruption in transit through the Strait of Hormuz. The second, more serious risk, would be direct attacks on oil and gas infrastructure across the region. “The third and least probable but most severe scenario would involve damage to critical water infrastructure, which would have a major humanitarian dimension,” Banerjee added.
