Crude oil prices decline as easing supply concerns offset Middle East tensions

The rupee fell to a record low of 92.63 against the US dollar, pressured by foreign fund outflows, strong dollar demand and geopolitical tensions, even as domestic equities gained and crude prices showed slight easing in global markets.

New Delhi: Crude oil prices declined by Rs 137 to Rs 8,734 per barrel in futures trade on Wednesday as signs of easing supply concerns emerged in the market amid geopolitical tensions.

On the Multi Commodity Exchange (MCX), crude oil for the March delivery declined by Rs 137, or 1.54 per cent, to Rs 8,734 per barrel in a business turnover of 5,244 lots.

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The April contract also dipped by Rs 98, or 1.11 per cent, to Rs 8,746 per barrel in 14,676 lots.

Analysts said crude oil prices remained volatile as markets weighed geopolitical risks against signs of easing supply concerns in the region.

In the overseas market, Brent Oil futures for the May delivery slipped 0.62 per cent to USD 102.78 per barrel, while West Texas Intermediate (WTI) crude for the same month contract dropped 1.56 per cent to USD 94.04 per barrel in New York.

“WTI crude futures fell below USD 95 per barrel, paring gains from the previous session as investors navigated ongoing hostilities in the Middle East and uncertainty surrounding the Strait of Hormuz,” Jigar Trivedi, Senior Research Analyst at IndusInd Securities, said.

Meanwhile, Iranian state media confirmed the death of Ali Larijani, a key figure in the country’s wartime leadership, further intensifying tensions in the region.

Iran has escalated attacks on regional energy infrastructure, including strikes targeting Saudi Arabia’s eastern province, raising concerns over potential disruptions.

At the same time, US allies have rebuffed calls by President Donald Trump to support in safeguarding commercial shipping through the Strait of Hormuz, even as Iran allowed limited safe passage for certain vessels through the Strait of Hormuz, depending on their affiliations, providing some relief to markets, analysts said.