Stories
Crude Oil Prices Brace for Volatile Week Amid West Asia Supply Concerns
- •Crude oil prices are expected to stay volatile due to ongoing supply concerns in West Asia and stalled US-Iran talks.
- •Investors will closely monitor weekly US crude inventory data and key developments surrounding the Strait of Hormuz.
- •Geopolitical risks and actual supply constraints are currently driving price movements rather than headlines or policy optimism.
- •Brent crude futures rose to settle near 109.86 dollars per barrel, while WTI futures advanced to 99.02 dollars per barrel.
- •Analysts warn that broader supply recovery may not happen until 2027, keeping markets sensitive to further disruptions.
Key Questions Answered
Crude oil prices are experiencing volatility due to ongoing supply concerns in West Asia, stalled US-Iran talks, and critical uncertainties surrounding the Strait of Hormuz waterway. Logistical bottlenecks, vessel attacks, and Houthi threats have further kept regional oil flows vulnerable to disruptions.
On the Multi Commodity Exchange (MCX), crude oil futures for November delivery rose by 6.4 percent to close at Rs 9,394 per barrel. Internationally, Brent crude futures for December climbed nearly 5 percent to settle at USD 109.86 per barrel, while West Texas Intermediate (WTI) futures advanced nearly 9 percent to settle at USD 99.02 per barrel.
US President Donald Trump issued an executive order waiving key sanctions, restrictions, and tariffs on Russia and Iran, providing temporary relief to major buyers of Russian oil such as India. However, the move does not eliminate supply disruption risks if attacks on energy infrastructure continue.
