.png){kind=logo}
Crude oil prices rose on Monday after renewed US-Iranian conflict revived concerns over supply disruptions. Brent crude futures rose 0.67% to $72.47 a barrel. US West Texas Intermediate (WTI) advanced 1.80% to $70.05 a barrel.
The rebound followed Brent's drop below $70 on Friday, its first move below that level since February 27, before the latest escalation involving Iran.. The gains were small but traders remained focused on the risk of disruption around the Strait of Hormuz at one of the world's key oil and liquefied natural gas shipping route.
Natural gas futures climbed 0.82% to 3.306 per MMBtu, gasoline rose 0.90% to 2.9836, and heating oil added 1.30% to 3.2499, reflecting continued concerns over energy supplies as tensions persist around the Gulf.
The jump in crude prices came as the result of renewed military action between the US and Iran. Washington is said to have suspended talks over the conflict following an attack on commercial shipping off the coast of Iran this week by its military forces in the Strait of Hormuz, a move in response to Tehran's attacks on the shipping vessels.
The two sides are likely to meet in Doha on Tuesday for further discussions, according to an Axios report cited by Bloomberg. However, the weekend escalation has already slowed some oil and natural gas shipments through the region.
The large crude carrier Kiku, which was transporting some 2 million barrels of oil, was struck and was last seen off near Fujairah, a major port in the United Arab Emirates on the Gulf of Oman. US Central Command indicated that the coastal shipping traffic was continuing, some tankers reportedly abandoned attempts to exit.
Also Read: BPCL Shares at Rs. 313.80 After Brent Crude Falls, Should Investors Buy Oil Stocks Now?
Crude price remains a key macroeconomic indicators for India since it imports around 85% of its oil requirement. A prolonged increase in crude can put pressure on the rupee, increase the import bill and increase inflation risks.
“Crude oil prices are currently trading in the $69–70 per barrel range, remaining well below the highs witnessed during the recent Middle East conflict. Although the latest flare-up in regional tensions triggered a brief bout of volatility in energy markets, crude prices have remained largely contained, providing continued relief to India's macroeconomic outlook,” said Ponmudi R, CEO of Enrich Money.
