New Delhi, Crude oil prices retreated by ₹ 140 to ₹ 8,204 per barrel in futures trade on Friday, tracking weak global benchmarks after US President Donald Trump halted planned military strikes on Iran’s oil infrastructure.
On the Multi Commodity Exchange (MCX), crude for June delivery declined by ₹ 140, or 1.68 per cent, to ₹ 8,204 per barrel in a business turnover of 12,005 lots.
Similarly, the July contract weakened by ₹ 137, or 1.66 per cent, to ₹ 8,103 per barrel in 4,711 lots.
The decline mirrored moves in global markets, where Brent oil futures for August delivery slipped USD 2.14, or 2.37 per cent, to USD 88.24 per barrel and West Texas Intermediate (WTI) for the July contract dipped 2.18 per cent to USD 85.80 per barrel.
“Brent slipped below USD 89 and WTI below USD 86 per barrel after US President Donald Trump paused planned strikes on Iran, citing progress towards a peace accord backed by Saudi Arabia, the UAE, Qatar and Turkey,” brokerage firm Kotak Neo said.
The comments made by the American President eased fears of an immediate escalation that could threaten energy supplies from the Gulf region.
The optimism, however, was tempered by Tehran’s response. Iranian officials said no agreement had been approved, leaving investors to grapple with the possibility that negotiations could still unravel.
Meanwhile, the latest monthly report of the Organization of the Petroleum Exporting Countries (OPEC) showed crude production by the Declaration of Cooperation (DoC) countries declined by 1,90,000 barrels per day (bpd) to 33.13 million bpd in May.
The group also maintained that China, India and developing Asian economies would remain the primary engines of global demand growth.
According to analysts, even after Friday’s decline, traders remain cautious. The absence of a formal agreement and the prospect of a peak summer fuel demand mean that oil markets could quickly regain lost ground if US-Iran negotiations falter. PTI
