Geopolitical Tensions in West Asia Keep Supply Concerns Alive as Traders Lock in Gains
New Delhi (Economy India): Crude oil futures declined nearly 2% on Friday as traders booked profits following a recent price rally, even as global oil markets remained supported by geopolitical tensions in West Asia that kept supply concerns in focus.
On the Multi Commodity Exchange (MCX), crude oil contracts for August delivery fell by ₹148, or 1.64%, to ₹8,876 per barrel, with a trading volume of 17,232 lots.
September Contract Also Declines
The September crude oil futures contract also witnessed selling pressure, slipping ₹154, or 1.79%, to ₹8,426 per barrel in a turnover of 2,125 lots.
The decline reflects investors locking in profits after crude prices surged in recent sessions.
Brent Crude Remains Near $100
Despite the correction in domestic futures, international benchmark Brent crude continued to hover close to the $100 per barrel mark.
Global oil prices have remained elevated due to:
- Ongoing geopolitical tensions in West Asia.
- Concerns over potential disruptions in global crude supply.
- Market uncertainty surrounding key oil-producing regions.
These factors have limited the downside in crude oil prices despite profit booking.
Crude Oil Futures Performance (July 24)
| Contract | Previous Price (Approx.) | Current Price | Change (₹) | Change (%) | Trading Volume |
|---|---|---|---|---|---|
| August 2026 Crude Oil | ₹9,024/barrel | ₹8,876/barrel | -₹148 | -1.64% | 17,232 lots |
| September 2026 Crude Oil | ₹8,580/barrel | ₹8,426/barrel | -₹154 | -1.79% | 2,125 lots |
Global Oil Market Snapshot
| Indicator | Status |
|---|---|
| Brent Crude | Hovering near US$100 per barrel |
| Market Trend | Profit booking after recent rally |
| Major Support Factor | Geopolitical tensions in West Asia |
| Supply Outlook | Supply concerns remain due to regional tensions |
| Impact on India | Influences fuel prices, inflation, and import bill |
| Factor | Impact |
|---|---|
| Profit Booking | Weighed on MCX crude oil futures |
| Geopolitical Tensions | Continued to support global crude prices |
| Brent Crude Near $100 | Limited downside in oil prices |
| Indian Economy | Higher crude prices may affect inflation and fuel costs |
| Market Outlook | Volatility likely to continue amid global supply uncertainties |
Profit Booking Weighs on Prices
Market analysts said traders chose to book profits after the recent rally in oil prices, resulting in short-term weakness in futures contracts.
However, the broader outlook remains supported by:
- Tight global supply conditions.
- Strong seasonal demand.
- Continued geopolitical risks.
Impact on India
As one of the world’s largest crude oil importers, India closely monitors international oil prices because they influence:
- Fuel prices.
- Inflation.
- Import bill.
- Fiscal balance.
- Transportation and logistics costs.
Any sustained increase in crude prices could have implications for domestic inflation and energy costs.
While Friday’s decline was driven by profit booking, crude oil prices are expected to remain volatile as markets assess geopolitical developments in West Asia, global demand trends, and supply dynamics. Investors will continue to track international benchmarks for further direction.
(Economy India)
