Crude oil futures spike over 3 pc to Rs 9,783/barrel; Brent tops USD 117

New Delhi, Oct 23 (PTI) Crude oil futures jumped Rs 299 to Rs 9,783 per barrel on Friday, tracking strong trends in global markets amid reports of potential renewed US-Israeli strikes on Iranian nuclear and military assets.

On the Multi Commodity Exchange (MCX), crude oil futures for the November delivery increased by Rs 299, or 3.15 per cent, to Rs 9,783 per barrel from Thursday’s closing level of Rs 9,484 per barrel.

Similarly, the December contract also appreciated by Rs 307, or 3.29 per cent, to Rs 9,651 per barrel on the MCX.

Analysts said escalating tensions between the US and Iran, stalled diplomatic talks and reports of potential renewed US-Israeli strikes on Iranian nuclear and military assets have heightened geopolitical risks.

Later,

Iran said it would attack oil facilities, undersea cables, data centres and AI facilities in the Gulf region if a new US-Israeli offensive was launched.

In global markets, Brent oil futures for the December delivery breached the USD 117 level, climbing by USD 4.28, or nearly 4 per cent, to USD 117.45 per barrel, marking the highest level for the benchmark since April 30.

West Texas Intermediate for the same month contract rose USD 3.82, or nearly 4 per cent, to USD 103.29 per barrel.

In crude, the premium is being built on threatened rather than lost supply. Aramco reportedly asked staff to leave its Dhahran headquarters, said Anindya Banerjee, Head of Commodity and Currency Research at brokerage platform Kotak NEO.

The December-May Brent spread is backwardated by around USD 13–17 a barrel, which means buyers are paying that much more for oil now than for oil in five months. The gap between Brent and US crude has widened beyond USD 13. That is the premium the market is paying for internationally traded barrels exposed to the conflict, he said. “The overall trend in Brent is bullish. Any escalation that reaches Saudi export infrastructure would take prices through USD 120 with little difficulty. A credible diplomatic step would take the risk premium out first, starting at the front of the futures curve,” Banerjee said. PTI HG HG BAL

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