Crude oil prices rebound on fears of US involvement in Israel-Iran war; MCX crude oil rate jumps 2%
Crude oil prices traded higher on Multi Commodity Exchange (MCX) on Thursday following a rebound in the international Brent oil prices, supported by the escalating conflict between Israel and Iran in the Middle East.
MCX crude oil futures for July contract opened higher at ₹ 6,360 per barrel as against its previous close of ₹ 6,334 level. MCX crude oil prices rallied 2% to a high of ₹ 6,467, and were last trading 1.72% higher at ₹ 6,443 per barrel.
In the international market, crude oil prices surged after Israel attacked Iranian nuclear sites in Natanz, adding to fears of a broader conflict in the Middle East that could disrupt crude supplies.
Brent crude futures rallied 1.05% to $75.93 a barrel, while US West Texas Intermediate crude for August rose 0.74% to $77.27 a barrel.
The conflict in the Middle East continued with Israel and Iran's aerial attacks. The Israeli army said it had struck an 'inactive nuclear reactor' in Arak in Iran during overnight raids. It also targeted Islamic republic's Natanz nuclear site again.
'Crude oil prices held near a five-month high as the conflict entered its seventh day. The main concern for the oil market is the Strait of Hormuz, a vital route for a fifth of global crude, though Tehran has so far shown no signs of disrupting shipments. Separately, the Federal Reserve kept interest rates steady but signaled two cuts by year-end, potentially supporting growth and boosting oil demand,' said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
Meanwhile, investors also focused on whether President Donald Trump will plunge the US into Israel-Iran war. Reports stated that senior US officials are preparing for the possibility of a strike on Iran in the coming days.
Goldman Sachs said a geopolitical risk premium of about $10 a barrel is justified given lower Iranian supply and risk of wider disruption that could push Brent crude above $90, Reuters reported.
According to Jigar Trivedi, MCX crude oil July futures may experience a buying from ₹ 6,300 level and expected to rise to ₹ 6,450 per barrel.
Rahul Kalantri, VP Commodities, Mehta Equities Ltd believes crude oil is having support at $72.50 - $71.90 and resistance at $73.85 - $74.50 in today's session.
'MCX crude oil price has support at ₹ 6,250 - ₹ 6,170 levels, while resistance is seen at ₹ 6,395 - ₹ 6,470,' Kalantri said.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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