Crude Oil Falls 2% in Futures Trade Amid Weak Global Cues

• Crude oil fell ₹179 to ₹9,061 per barrel on MCX for June delivery.

• The drop snapped a three-day rally after a conditional ceasefire agreement.

• Brent and WTI also declined in overseas markets.

Crude oil prices dropped 2% to ₹9,061 per barrel in futures trade on Thursday amid weak trends in the international markets.

On the Multi Commodity Exchange, the most-traded June contract declined ₹179, or 1.94%, to ₹9,061 per barrel in a business turnover of 12,444 lots, snapping a three-day rally.

Crude oil prices eased in the domestic futures market after snapping three sessions of gains, after Israel and Lebanon agreed to a conditional ceasefire, brokerage firm Kotak Neo said.

In the international markets, Brent oil futures for August delivery fell 0.61% to $97.21 per barrel, and West Texas Intermediate (WTI) crude slipped 0.57% to $95.47 per barrel.

The decline came after a conditional ceasefire agreement between Israel and Lebanon, which revived hopes for progress in negotiations to resolve the Iran conflict and reopen the Strait of Hormuz, Kotak Neo said.

Meanwhile, Israeli defence minister Israel Katz said the military will continue its ground operations in southern Lebanon, hours after Tel Aviv and Beirut agreed to implement a US-backed ceasefire to end hostilities.

Market participants also kept a close watch on continued risks around the Strait of Hormuz, which serves as the key transit route for nearly one-fifth of global crude trade, it added.