New Delhi, March 17 Crude oil prices rebounded by ₹261 to ₹8,981 per barrel in futures trading on Tuesday, amid firm global trends and uncertainty over supply disruptions due to the ongoing conflict in West Asia.
On the Multi Commodity Exchange (MCX), crude oil for March delivery increased by ₹261, or 3%, to ₹8,981 per barrel in a trading turnover of 12,183 lots. On Monday, it declined by ₹332, or nearly 4%, to close at ₹8,720 per barrel.
The April contract also appreciated by ₹305, or 3.52%, to ₹8,978 per barrel in 13,778 lots. In the previous session, it had dipped by ₹270, or 3%, to settle at ₹8,673 per barrel on the MCX.
Analysts said crude prices rebounded after a sharp correction in the previous session, as investors continued to weigh evolving geopolitical developments and their potential impact on global oil supply.
In the international market, Brent Oil futures for May delivery gained USD 3.32, or 3.31%, to USD 103.53 per barrel, while West Texas Intermediate (WTI) crude for the May contract went up nearly 4% to USD 96.09 per barrel in New York.
"WTI crude futures rose toward USD 96 per barrel after losing more than 5% in the previous session, as investors continued to assess the impact of the Middle East conflict on global supply," said Jigar Trivedi, Senior Research Analyst at IndusInd Securities.
On Monday, oil prices declined sharply after several tankers safely passed through the Strait of Hormuz, easing concerns about a prolonged disruption in one of the world's most critical oil transit routes.
However, volatility persisted as geopolitical tensions remained elevated, with markets closely monitoring the situation in the region.
According to Trivedi, India is also negotiating additional vessels while several countries are engaged in back-channel talks with Iran to ensure safe passage for their ships. Reports of a direct communication channel between Washington and Tehran have also emerged, indicating ongoing diplomatic engagement to prevent further escalation.
In a bid to stabilise energy markets, the United States is preparing to release the first tranche of emergency crude reserves.
The International Energy Agency (IEA) has also signalled readiness to further tap global stockpiles.
IEA Executive Director Fatih Birol said member countries could release more oil beyond the 400 million barrels already announced, adding that a further 1.4 billion barrels remain available in reserves or industry stocks that governments could access.
Before the escalation of the Iran war, the global consumption stood at about 101 million barrels per day, while Brent Crude continued to trade above the USD 100 per barrel, reflecting tight supply conditions.