Crude Oil Futures Zoom Over 26% to Hit Record High of ₹10,549 Per Barrel

The price for April contract also appreciated by ₹2,158, or 26.91%, to a new peak of ₹10,177 per barrel against ₹8,019 per barrel in the previous session. During the session, both contracts hit their respective upper circuit limit on the MCX.

MCX Crude oil March contract has already touched upper circuit. On the other hand, this level will accelerate upside momentum in the crude oil price towards ₹11,300 per barrel in the upcoming sessions, Aamir Makda, Commodity & Currency Analyst, Choice Broking, said.

In the international markets, crude oil prices surged above $100 per barrel for the first time since 2022 as the war involving the US, Israel and Iran entered its second week, fueling concerns over global inflationary pressures. West Texas Intermediate (WTI) crude oil futures for April delivery gained $28.58, or 31.44 %, to $119.48 per barrel, while Brent Crude for the May contract climbed $26.71, or 28.82%, to hit an intraday high of $119.40 per barrel in New York.

Crude oil prices in the overseas markets surged after oil tankers were blocked from the Strait of Hormuz, prompting several Middle Eastern producers to curb crude output, Jigar Trivedi, Senior Research Analyst at IndusInd Securities, said.

The conflict has already halted roughly a fifth of global crude and natural gas supply as Iran targets ships in the vital shipping route, he added.

Anindya Banerjee, Head of Commodity and Currency Research, Kotak Securities, said investors should also monitor the escalation ladder in the West Asian conflict.

"The first stage is the current disruption in transit through the Strait of Hormuz. The second, more serious risk, would be direct attacks on oil and gas infrastructure across the region.

"The third and least probable but most severe scenario would involve damage to critical water infrastructure, which would have a major humanitarian dimension," Banerjee added. PTI DR HVA