New Delhi, March 11 Crude oil prices jumped by Rs 460 to Rs 7,881 per barrel in futures trading on Wednesday as global benchmarks advanced due to intensifying geopolitical tensions.
On the Multi Commodity Exchange (MCX), crude oil for March delivery rose by Rs 460, or 6.2 per cent, to Rs 7,881 per barrel in a trading volume of 16,930 lots.
Similarly, the April contract also increased by Rs 462, or nearly 6.3 per cent, to Rs 7,815 per barrel in 7,833 lots.
Analysts said that crude oil prices remained volatile as traders assessed supply risks stemming from the ongoing conflict in West Asia and disruptions to tanker movement through the Strait of Hormuz.
In international markets, West Texas Intermediate (WTI) crude oil futures for April delivery rose by nearly 3 per cent to trade at USD 85.74 per barrel, and Brent Oil for the May contract went up by 2.47 per cent to USD 89.97 per barrel in New York.
According to analysts, the International Energy Agency (IEA) proposed the largest release of oil reserves in its history, surpassing the 182 million barrels the group released in 2022 when Russia invaded Ukraine.
IEA member countries currently hold over 1.2 billion barrels of public emergency oil stocks, along with around 600 million barrels of industry stocks held under government obligation.
Jigar Trivedi, Senior Research Analyst at IndusInd Securities, said that oil markets remain highly sensitive to geopolitical developments.
Earlier, US President Donald Trump said that the conflict involving Iran could end soon, but subsequent statements from US officials indicated that military operations were intensified and the chances for diplomatic talks remained slim.
Meanwhile, major Middle Eastern producers have collectively reduced output by more than 6 million barrels per day as the Strait of Hormuz remains largely restricted, Trivedi added.
US officials on Tuesday also delivered conflicting statements, adding to market uncertainty.