Crude oil futures ease 2% to Rs 8,876/barrel on profit-booking

Crude oil futures fell 2 per cent to Rs 8,876 per barrel on Friday as traders booked profits after the recent rally, even as global benchmark Brent hovered near the $100-a-barrel mark amid geopolitical tensions in West Asia that kept supply concerns alive.

On the Multi Commodity Exchange (MCX), crude for the August delivery declined by Rs 148, or 1.64 per cent, to Rs 8,876 per barrel in a business turnover of 17,232 lots.

The September contract also eased Rs 154, or 1.79 per cent, to Rs 8,426 per barrel in 2,125 lots.

Traders said profit-booking capped gains after crude prices logged their strongest weekly rally in months on fears of supply disruptions.

In the international markets, Brent oil futures for September delivery traded marginally lower at $100.28 per barrel on the Intercontinental Exchange, while West Texas Intermediate (WTI) for the same month contract fell 0.53 per cent to $91.70 per barrel on the New York Mercantile Exchange.

“Brent crude prices are holding near $100 after crossing the level for the first time in two months this week,” said Anindya Banerjee, Head of Commodity and Currency Research, Kotak Securities.

He said the rally was triggered by Yemen’s Houthi attacks on two Saudi oil tankers in the Red Sea, as well as US President Donald Trump’s threat of a massive strike on Iran, and Kazakhstan’s suspension of exports through the Caspian pipeline following drone strikes.

Banerjee said investors are watching the Bab el-Mandeb Strait, warning that any significant disruption to shipping through the Red Sea could propel Brent towards $120 per barrel, as global oil inventories have been depleted by months of continuous drawdown.

Meanwhile, the US military carried out a 13th consecutive night of strikes on Iran, while UN Secretary-General Antonio Guterres cautioned that West Asia was being pushed to the “edge of the unimaginable” as the conflict in the region widened.