Mumbai: Crude oil prices continued their upward trend on Monday, rising sharply in futures trade. Prices increased by Rs 359 to reach Rs 9,617 per barrel, marking the fourth straight session of gains. The rally reflects growing concerns over supply disruptions due to rising tensions in West Asia.
On the Multi Commodity Exchange (MCX), crude oil for April delivery rose nearly 4 percent to Rs 9,617 per barrel. Meanwhile, the May contract jumped Rs 436, or nearly 5 percent, hitting a lifetime high of Rs 9,407 per barrel.
Global Markets Also Surge
The rise in domestic prices is in line with global trends. In international markets, West Texas Intermediate (WTI) crude for May delivery increased by USD 3.27 to USD 101.50 per barrel. Brent crude also climbed by USD 2.89 to USD 109.30 per barrel.
Analysts said crude prices have surged significantly since the start of the West Asia conflict. Earlier, Brent crude was trading around USD 70 per barrel, but tensions have pushed prices sharply higher.
Strait of Hormuz in Focus
One of the main reasons behind the rally is the growing risk around the Strait of Hormuz. This narrow route is one of the most important oil transit points in the world.
Any disruption in this region can impact global oil supply. Investors are closely watching developments, as even a small disruption could lead to a major supply shortage.
Geopolitical Tensions Drive Prices
Market sentiment has been influenced by strong geopolitical signals. US President Donald Trump warned Iran to reopen the Strait of Hormuz and hinted at possible action against its energy infrastructure.
In response, Iran signalled retaliation against US and Israeli assets. This has increased fears of further escalation in the region.
Supply Concerns and Market Outlook
The ongoing conflict has already affected shipping routes and oil production. This has tightened global supply and pushed prices higher.
The International Energy Agency (IEA) has warned of a possible major shock to global oil markets, despite efforts to release emergency reserves and increase supply.
For now, traders remain cautious. Prices may stay high if tensions continue, especially if supply disruptions worsen.
