Crude oil breaks all records in India… Will petrol and diesel become expensive again?
Due to fears of global supply jitters, crude oil prices have reached an all-time high of ₹10,150 per barrel in the domestic futures market (MCX). Global geopolitical tensions and supply cuts by major oil-producing countries have deepened fears of a crude oil shortage in the market.
Crude oil prices rose by ₹226 to a new record high of ₹10,150 per barrel on Tuesday on the Multi Commodity Exchange, the country's futures market.
This was due to continued concerns about supply disruptions and instability related to the US-Iran conflict. On the Multi Commodity Exchange, crude oil prices for June delivery rose for the third consecutive session.
" "It jumped 226 rupees, or 2.3 percent, to its all-time high of 10,150 rupees per barrel. Analysts said domestic crude oil futures remained strong despite weakness in global benchmarks, as some geopolitical risk premiums softened on signs of a possible diplomatic truce between Washington and Tehran.
Slowdown in the international market
In international markets, Brent crude for July delivery fell nearly 2 percent to $110.32 a barrel, while West Texas Intermediate (WTI) for the same month's contract slipped 1 percent to $103.45 a barrel.
Brokerage firm Kotak Neo (formerly Kotak Securities) said WTI crude oil slipped to around $103 a barrel on Tuesday. It eased after several sessions of strong gains as geopolitical risk premiums eased slightly.
Oil prices eased after US President Donald Trump said he had canceled a planned military attack on Iran following appeals from Saudi Arabia,
Qatar, and the UAE. This raised hopes that diplomatic talks could resume. However, traders remained cautious as Iran has yet to show any signs of a breakthrough in talks with the US.
Relief from Russian oil
Crude oil prices have surged sharply over the past week, primarily due to the stalled nuclear talks and disruptions to tanker traffic through the Strait of Hormuz,
a key artery in global energy transport routes. Kotak Neo said concerns about Iran's nuclear program and the ongoing blockade continue to support higher risk premiums in oil markets.
The brokerage firm further stated that a temporary waiver granted by the US, allowing the sale of Russian crude oil already loaded in tankers, could provide limited relief on the supply front in the near term.