New Delhi: Crude oil prices could extend their decline next week, with Brent crude potentially slipping to $90–92 per barrel as rising global supplies and swelling US inventories outweigh geopolitical tensions in West Asia.
Analysts expect oil markets to remain volatile, although the near-term outlook continues to favour sellers amid concerns over a global supply surplus.
Brent Faces Further Downside
Ajit Mishra, SVP of Research at Religare Broking, expects Brent crude to test $90–92 per barrel in overseas markets.
Brent futures for January delivery declined $2.48, or 2.52%, last week to settle at $95.84 per barrel.
Similarly, US benchmark West Texas Intermediate (WTI) slipped $2.27, or 2.5%, to $88.56 per barrel.
Mishra said crude oil markets are increasingly being driven by supply-demand fundamentals rather than geopolitical risks.
Rising Supply Weighs On Prices
Higher production from OPEC+ countries and increasing US crude inventories have intensified concerns over excess supply.
OPEC+ output increased by nearly 1.96 million barrels per day in October, while US crude inventories rose by 4.66 million barrels.
Investors will closely monitor American Petroleum Institute inventory estimates, official US stockpile data and crude import figures for fresh direction.
Iran Tensions Remain A Risk
Despite bearish fundamentals, tensions between Washington and Tehran could trigger sudden price fluctuations.
Iran claimed it launched six drones targeting a US air-defence radar installation in Bahrain.
Meanwhile, Washington continues to maintain its naval blockade of Iranian ports.
Any disruption to shipping through the strategically important Strait of Hormuz could threaten global energy supplies and push prices higher.
What Lower Oil Means For India
On the Multi Commodity Exchange (MCX), November crude futures declined 2.16% to ₹8,369 per barrel, while December contracts fell 2.31% to ₹8,282.
For India, sustained weakness in crude prices could help reduce inflationary pressures, support the rupee and improve the current account balance.
Lower energy costs could also benefit corporate earnings, particularly in oil-dependent industries.[4:16 PM]Crude Oil Prices Plunge at Sunset.png
