Crude oil futures hit new peak of Rs 10,150/barrel on global supply jitters

New Delhi, May 19 (PTI) Crude oil prices climbed by Rs 226 to a fresh record of Rs 10,150 per barrel in futures trade on Tuesday, tracking persistent concerns over supply disruptions and volatility surrounding the US-Iran conflict.

On the Multi Commodity Exchange, crude oil for June delivery gained for the third straight session, jumping by Rs 226, or 2.3 per cent, to hit a lifetime high of Rs 10,150 per barrel.

Analysts said domestic crude oil futures remained firm despite weakness in the global benchmarks after signs of a possible diplomatic pause between Washington and Tehran tempered some geopolitical risk premiums.

In the international markets, Brent crude for July delivery fell nearly 2 per cent to USD 110.32 per barrel, while West Texas

Intermediate (WTI) for the same month contract slipped 1 per cent to USD 103.45 per barrel.

“WTI crude oil slipped around USD 103 per barrel on Tuesday, easing after a strong multi-session rally as geopolitical risk premiums moderated slightly,” brokerage firm Kotak Neo (formerly Kotak Securities) said.

Oil prices eased after US President Donald Trump said he had called off a planned military strike on Iran following appeals from Saudi Arabia, Qatar, and the UAE, raising hopes that diplomatic negotiations could resume.

However, traders remained cautious as Iran has yet to signal any breakthrough in talks with the US.

Crude oil prices have rallied sharply over the past week amid stalled nuclear negotiations and disruptions to tanker movement through the Strait of Hormuz, a key artery for the global energy transit route.

“Concerns surrounding Iran’s nuclear programme and the ongoing blockade continue to support elevated risk premiums in oil markets,” Kotak Neo said.

The brokerage firm added that a temporary US waiver allowing sales of Russian crude already loaded on tankers may provide limited near-term supply relief.

Any signs of progress in diplomacy could spark profit-booking, though unresolved Hormuz disruptions and persistent geopolitical tensions are likely to keep crude prices volatile and well supported in the near-term, it added. PTI HG HVA