New Delhi, March 25 Crude oil prices declined by more than 4 per cent to Rs 8,340 per barrel in futures trading on Wednesday, tracking weak global trends amid reports of possible negotiations between the US and Iran to end the war.
On the Multi Commodity Exchange (MCX), crude oil for April delivery depreciated by Rs 396, or 4.5 per cent, to Rs 8,340 per barrel. The May contract also fell by Rs 305, or 3.58 per cent, to Rs 8,209 per barrel.
Analysts said crude prices came under pressure as a bearish sentiment gripped global energy markets following shifting geopolitical developments in West Asia.
"Crude oil prices took a hit on Wednesday opening with a gap down as bearish sentiment takes hold," Aamir Makda, Commodity & Currency Analyst at Choice Broking, said.
He added that much of this cooling is driven by a shift in the geopolitical landscape.
Globally, West Texas Intermediate (WTI) crude futures for the May contract slipped USD 3.21, or 3.48 per cent, to USD 89.14 per barrel on the NYMEX, while Brent Oil for June delivery decreased USD 4.65, or 4.64 per cent, to USD 95.58 per barrel in New York.
Makda said that there were reports that the US may lift trade sanctions on Iran in exchange for a nuclear deal have significantly eased global supply concerns and war-related uncertainty.
A slight dip in the dollar index to 98.79 also added downward pressure on oil prices, he added.
US President Donald Trump has expressed optimism over a potential deal with Iran, stating that Vice President JD Vance and Secretary of State Marco Rubio were engaged in negotiations.
However, Tehran has yet to formally respond, with messages reportedly exchanged via intermediaries.
In the previous session, crude oil prices had ended nearly 5 per cent higher, recovering some of its earlier losses amid reports that Washington was considering to deploy 1,000 soldiers to West Asia, which intensified supply disruption concerns.
Contrasting media reports from the West Asia has kept investors cautious, with analysts noting that uncertainty around possible negotiations continues to drive volatility in energy markets.