Crude oil prices surge in India today: What's the reason?
What's the story
Crude oil prices on the Multi Commodity Exchange (MCX) rose nearly 0.7% to ₹10,095 per barrel today. The rise comes amid renewed fears of a potential escalation in the ongoing conflict between the US and Iran, which has been disrupting Middle East oil supplies. Global brokerage firm Citi has predicted that Brent crude could reach as high as $120 per barrel in the near future due to these geopolitical tensions.
Supply disruption
The world's largest oil supply disruption
The ongoing US-Israeli conflict with Iran has severely impacted operations in the Strait of Hormuz, a key route for nearly one-fifth of global oil shipments. The International Energy Agency has termed this as the world's largest oil supply disruption. Despite President Donald Trump's earlier indications that the conflict could end soon, he also hinted at a possible new attack on Iran within days if no agreement is reached.
Market uncertainty
Trump's mixed signals leave traders wary
Trump's mixed signals about a possible new military strike on Iran have left traders wary of making bullish bets without clearer signs of an escalation. NATO is also considering escorting vessels through the Strait if it remains closed beyond early July, further adding to the uncertainty in the oil market.
Market forecast
Technical outlook for crude oil prices
Ponmudi R, the CEO of Enrich Money, has given a technical outlook for crude oil prices. He said immediate resistance is at ₹10,000-₹10,050. A sustained move above this zone could trigger a recovery toward ₹10,150-₹10,300. On the downside, ₹9,800-₹9,750 acts as immediate support; a break below this area could extend the decline toward ₹9,700-₹9,600. The near-term bias remains cautious due to ongoing supply disruption concerns.