Brent oil prices witnessed a dramatic reversal on Tuesday, plunging nearly 27 per cent from the previous day’s intraday high of USD 119 per barrel to intraday low
of USD 86 per barrel. The sharp correction is one of the steepest single‑day declines in recent months which came after West Texas Intermediate Crude earlier in overnight trade spiked above USD 119, triggering volatility. The easing in oil prices came after US markets posted strong intraday recovery on Wall Street despite early sharp losses, led by US President Donald Trump indicating that military conflict with Iran may be nearing completion. The Dow Jones Industrial Average was up 239 points or 0.5 per cent after being down nearly 900 points intraday. Meanwhile, the S&P 500 closed over 0.8 per cent, after falling as much as 1.5 per cent during the session. Nasdaq Composite also ended over 1.4 per cent, reversing early losses. Trump also emphasised efforts to keep global oil supplies flowing, easing energy-supply fears. The President highlighted that the US is considering taking control of the Strait of Hormuz, a critical global oil shipping route. Oil prices have seen some of the most dramatic intraday declines in history during periods of extreme global disruption. One of the largest plunge occurred on 21 April 2020, when crude prices tumbled 24.40 per cent as the COVID‑19 pandemic brought global demand to a standstill. Just weeks earlier, on 9 March 2020, oil had already suffered another record fall of 24.10 per cent, also triggered by the rapid spread of COVID‑19 and the resulting collapse in economic activity. Before the pandemic, one of the sharpest single‑day declines was recorded on 24 September 2001, when prices dropped 13.44 per cent amid concerns over energy demand following the September 11 terrorist attacks in New York and Washington. As per DGCI&S, Ministry of Commerce & Industry, Commercial Intelligence Division India’s crude oil import basket continues to be dominated by a handful of major suppliers, with Russia, Iraq, Saudi Arabia, the UAE, and the United States emerging as the country’s top sources in terms of volumes. Among these, Russia has remained India’s largest crude supplier over the past three financial years. Imports from Russia rose 21.6 per cent from 50.85 MMT in FY 2022–23 to 83.02 MMT up 35.9 per cent in FY 2023–24, and further to 87.54 MMT up 35.8 per cent in FY 2024–25. (Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
