Rise in the US oil inventories along with assurance of energy supply from Russia doused international crude oil prices on Friday. The price movement comes a day after the Russia-Ukraine war pushed Brent Crude Oil prices to $105 per barrel.
Besides, Thursday was the first time since 2014 that crude oil prices crossed the $100 per barrel mark.
On the NYMEX WTI index, crude oil prices surged by 5.50 per cent near $97.22 per barrel.
Currently, Russia is one of the world's top producers of crude oil and any western sanctions against the country will stiffen the global supply. For India, higher crude oil prices are expected to mar India's economy with high inflation.
At present, India imports 85 per cent of its crude oil needs. Consequently, any rise in crude oil prices has a major impact on the domestic prices of petrol and diesel.
The cascading effect of higher fuel cost will trigger a general inflationary trend.
"Crude Oil prices rose with Russia's invasion of Ukraine driving global supply concerns. The traders and investors are also bracing for NATO to react and the potential impact of trade sanctions on Russia, the third-largest crude exporter globally," said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
"However, Crude oil prices may cap upside with a rise in US inventories and energy supply assurance from Russia. US EIA data showed a build of 4.515 million barrels in the week to February 18."
According to Kshitij Purohit, Lead Commodities and Currencies, CapitalVia Global Research: "Brent Oil price has retracted from the peak of $105 and trading above $97."
"The key support would be near $95.50 on Daily chart. Brent price is moving higher than WTI as it will be more affected by what is going on in the European region."
In addition, IIFL Securities VP, Research, Anuj Gupta: "The trend is still positive on crude oil prices. We are expecting it to test $100 per barrel again as Geopolitical tension may support the crude oil prices to rise."
(With inputs from IANS)