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Oil Prices Surge Amid West Asia Tensions
24 Mar
Summary
- Crude oil prices rose ₹204 to ₹8,549 per barrel on Tuesday.
- Market volatility linked to geopolitical uncertainty in West Asia.
- Global oil prices also saw significant gains in futures trade.
Crude oil prices experienced a significant rebound in futures trading on Tuesday, with prices rising by ₹204 to ₹8,549 per barrel on the Multi Commodity Exchange (MCX). This recovery occurred after a substantial plunge of nearly 13% in the prior trading session.
The market's volatility is largely attributed to ongoing geopolitical developments in West Asia, particularly concerning Iran and the critical Strait of Hormuz. Analysts note that conflicting reports and heightened tensions are contributing to sharp price swings.
Globally, benchmarks also reflected this upward trend. West Texas Intermediate (WTI) crude for May delivery gained 3.04% to $90.81 per barrel, while Brent Oil for June delivery rose 2.92% to $98.72 per barrel in New York.
Investor sentiment was impacted by remarks suggesting that conditions in the Strait of Hormuz may not normalize soon, alongside reports of potential involvement of Gulf countries in the conflict, intensifying supply concerns. Earlier volatility on Monday saw WTI crude drop over 10% after indications of US-Iran talks, but prices recovered as direct negotiations were denied, maintaining elevated uncertainty.
