Crude Oil Prices May Rise Further Next Week, Brent Could Hit $120 As West Asia Supply Fears Deepen
Crude oil prices may rise further next week as West Asia tensions and supply shortages persist. Analysts see Brent reaching USD 115–120 per barrel.
Crude oil prices may rise further next week as West Asia tensions and supply shortages persist. |
New Delhi: Crude oil prices are expected to remain volatile next week, with analysts predicting further gains as supply disruptions in West Asia and stalled US-Iran talks continue to worry global energy markets.
Despite efforts to improve oil availability, concerns over shipments through the Strait of Hormuz and attacks on energy infrastructure are keeping prices elevated.
Brent Crude Could Touch $120
Ajit Mishra, SVP of Research at Religare Broking, expects crude oil prices to remain cautiously bullish, driven by geopolitical tensions and actual supply disruptions.
He said any further escalation in West Asia could push Brent crude towards USD 115–120 per barrel.
Investors will closely monitor US crude inventories, imports and weekly stock data from the American Petroleum Institute (API) for fresh market direction.
Crude Oil Prices Jump Sharply
On the Multi Commodity Exchange (MCX), November crude oil futures gained Rs 566, or 6.4 percent, last week to settle at Rs 9,394 per barrel.
Internationally, Brent crude futures for December delivery climbed nearly 5 per cent to USD 109.86 per barrel, briefly touching USD 110 on Friday.
West Texas Intermediate (WTI) futures jumped nearly 9 per cent to USD 99.02 per barrel.
Supply Concerns Outweigh Relief Measures
Navneet Damani, Head of Research – Commodities at Motilal Oswal Financial Services, said physical supply shortages continue to dominate oil markets despite policy measures aimed at improving availability.
G7 stock releases, a US-Russia diesel agreement and possible sanctions relief have failed to bring sustained price declines.
An 8-million-barrel decline in US inventories and delayed Chinese crude shipments have added to concerns.
West Asia Tensions Remain Key Risk
Threats to shipping routes, vessel attacks and limited alternative export capacity could further disrupt global oil supplies.
The International Energy Agency has also warned about prolonged diesel shortages, while broader supply recovery is expected only in 2027.
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Meanwhile, domestic commodity markets will remain closed during Tuesday's morning session for Dussehra.
Analysts expect geopolitical developments and inventory data to determine the next major movement in crude prices.
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