Crude Oil Dips Amid Global Tension

New Delhi, Apr 24 (PTI) Crude oil prices traded marginally lower at Rs 9,127 per barrel in futures trade on Friday, even as global benchmarks moved higher amid escalating tensions in West Asia.

On the Multi Commodity Exchange, crude oil for May delivery slipped Rs 48, or 0.52 per cent, to Rs 9,127 per barrel in 12,549 lots.

Analysts said domestic oil prices edged lower due to profit-booking, while global markets remained firm on supply concerns.


In international markets, Brent Crude futures for the June contract rose USD 2.18, or 2.07 per cent, to USD 107.25 per barrel, while West Texas Intermediate for the same month delivery gained USD 1.90, or 2 per cent, to USD 97.75 per barrel in New York.

"Crude oil futures moved higher as Middle East tensions intensified, with the Strait of Hormuz remaining closed and ceasefire talks showing no clear progress," Kaveri More, Commodity Analyst - Technical Research at Choice Broking, said.

She added that fresh military activity around Tehran and continued US naval action in the region have kept supply concerns elevated, while President Donald Trump's order to target vessels laying mines in the Strait of Hormuz has added to fears of prolonged disruption.

"With Iran showing no immediate willingness to negotiate under continued naval restrictions, the standoff continues to tighten global supply, while stronger demand for US exports and falling domestic fuel inventories are providing additional support to prices," More said.