Crude futures rise to Rs 9,171 per barrel on strong global cues; Brent hits $106

The April contract appreciated by Rs 164, or 1.83 per cent, to Rs 9,107 per barrel in 12,898 lots on the MCX.

New Delhi: Crude oil prices rose Rs 119 to Rs 9,171 per barrel in futures trade on Monday as escalating tensions in West Asia kept supply risks in focus, even as the US explored ways to restore shipping around the Strait of Hormuz.

On the Multi Commodity Exchange (MCX), crude oil for March delivery increased by Rs 119, or 1.31 per cent, to Rs 9,171 per barrel in a business turnover of 12,745 lots.

Similarly, the April contract also appreciated by Rs 164, or 1.83 per cent, to Rs 9,107 per barrel in 12,898 lots on the MCX.

Analysts said crude oil prices remained elevated amid supply concerns as the ongoing conflict in West Asia disrupted oil flows through the Strait of Hormuz, a key passage for global energy shipments.

In the international market, Brent Oil futures for May delivery gained USD 2.82, or 2.73 per cent, to USD 105.96 per barrel, while West Texas Intermediate (WTI) crude for the May contract went up by 2.36 per cent to USD 99.13 per barrel in New York.

Crude oil prices remained elevated above $100 per barrel despite signals from US President Donald Trump that talks were underway to form a coalition aimed at reopening the Strait of Hormuz, Manav Modi, Analyst- Commodities, Motilal Oswal Financial Services Ltd, said.

EU's foreign policy chief Kaja Kallas on Monday said it is encouraging its member states to redirect the bloc's Red Sea naval mission to help restart oil and gas shipments in the Strait of Hormuz.

Meanwhile, the geopolitical situation remains tense after reports that the United States and Israel conducted fresh airstrikes on a key Iranian export terminal over the weekend.

The attacks have prompted threats of retaliation from Tehran, underscoring the risk that the conflict could widen and disrupt supplies from one of the world's most critical oil-producing regions, Modi said.

Traders are now weighing the possibility of further escalation against diplomatic efforts to stabilise shipping in the region, with volatility expected to persist as geopolitical tensions continue to dominate the sentiment.