Crude oil futures rise for sixth straight session to Rs 8,592 per barrel

Crude oil futures extended gains for a sixth consecutive session, rising to Rs 8,592 per barrel amid renewed US-Iran hostilities. Fears of supply disruptions pushed global oil prices higher, with Brent crude nearing USD 97 per barrel in international markets

New Delhi: Crude oil futures extended gains for the sixth consecutive session, rising nearly 1 per cent to Rs 8,592 per barrel on Wednesday amid renewed US-Iran hostilities, which stoked fears of disruptions to global energy supplies.

On the Multi Commodity Exchange (MCX), crude oil futures for September delivery rose by Rs 56, or 0.66 per cent, to Rs 8,592 per barrel.

---

The October contract also gained Rs 56, or 0.67 per cent, to Rs 8,391 per barrel.

“Crude oil’s rally accelerated on Wednesday after Washington and Tehran resumed direct hostilities following a period of relative calm,” said Kaynat Chainwala, AVP – Commodity Research at Kotak Securities.

The flare-up came after the US Central Command said it had completed a fresh wave of strikes against Iranian military targets, while the White House indicated that further military action remained possible if Tehran continued its retaliatory attacks.

Meanwhile, Iran expanded its response by striking Jordan, Bahrain and Kuwait, all of which host US military infrastructure, raising concerns that the conflict could draw in other Gulf states and threaten tanker traffic and regional oil production, she added.

In global markets, Brent crude futures for November delivery rose for the third straight session, jumping by USD 2.36, or 2.5 per cent, to USD 97.01 per barrel on the Intercontinental Exchange (ICE).

West Texas Intermediate (WTI) crude for the October contract also rose for the third straight session, trading 0.57 per cent higher at USD 90.73 per barrel on the New York Mercantile Exchange (NYMEX).

“Brent crude surged towards USD 97 and WTI approached USD 92 per barrel in global markets after a second consecutive day of US strikes on Iranian targets,” Chainwala said.

She noted that, with no signs of de-escalation, crude retains an upward bias, although stretched positioning leaves prices vulnerable to a sharp reversal following any credible ceasefire.

According to analysts, the prospect of a wider confrontation has put geopolitical risk firmly back in the driving seat for crude, with market participants weighing the threat to supplies against the possibility of a sudden reversal if diplomatic efforts produce a ceasefire.