New Delhi, March 13 Crude oil prices rose by ₹94 to ₹8,898 per barrel in futures trading on Friday amid the escalating conflict in West Asia and disruptions in energy supply.
On the Multi Commodity Exchange (MCX), crude oil for March delivery increased by ₹94, or 1.07%, to ₹8,898 per barrel in a trading volume of 16,107 lots.
The April contract also rose by ₹108, or 1.24%, to ₹8,843 per barrel in 10,880 lots.
Analysts said that oil prices rose due to geopolitical tensions surrounding Iran and disruptions in shipping through the Strait of Hormuz, which have raised concerns about global supply.
In the international market, Brent Crude Oil futures for May delivery rose by 0.66% to $101.12 per barrel, while West Texas Intermediate (WTI) crude for the April contract went up by 0.15% to $95.87 per barrel in New York.
"Brent crude is trading above or around $100 per barrel; this is usually a sign that uncertainty is rising across global markets," said Viram Shah, Co-Founder & CEO, Vested Finance.
He noted that the impact can extend beyond energy and start to affect inflation expectations, currencies, and overall risk sentiment across financial markets.
Jigar Trivedi, Senior Research Analyst at IndusInd Securities, said that WTI crude futures traded around $95 per barrel after a sharp two-day rally, as Iran's new supreme leader, Mojtaba Khamenei, pledged to keep the Strait of Hormuz effectively closed.
He (Khamenei) also warned that Iran may open additional fronts in the conflict if the US and Israel continue their attacks, while President Donald Trump said that preventing Tehran from obtaining nuclear weapons is more important to him than the cost of oil.
According to analysts, tanker traffic has been severely disrupted since the conflict began earlier this month, effectively removing 20% of global oil trade and forcing the Gulf Cooperation Council producers to cut production by 10 million barrels per day as storage capacity filled up.
Meanwhile, the International Energy Agency said that the disruption was the largest in the oil market history, prompting its members to agree on a 400 million barrel release from strategic stockpiles.