Brent and WTI crude oil contracts have lost 11% this week so far, the biggest weekly decline since June 2025.(Photo: AFP)AI Quick ReadCrude oil prices on the MCX rallied over 3% on Friday, following gains in international oil rates, amid supply concerns as tanker traffic through the critical Strait of Hormuz remained largely frozen.
MCX crude oil price for April futures contracts opened higher by ₹267, or 0.98%, at ₹9,200 per barrel, as against its previous close of ₹8,933 level. Oil prices surged as much as 3.23% to a high of ₹9,222 a barrel.
In the international market, Brent crude futures surged 1% to $96.86 a barrel, while US West Texas Intermediate futures were up 0.79% at $98.64 a barrel.
However, crude oil prices were still headed for a weekly loss amid signs of easing geopolitical tensions due to a fragile two-week ceasefire between the US and Iran, with Israel signaling a potential diplomatic opening.
For this week, both crude oil contracts have so far lost 11%, the biggest weekly decline since June 2025.
“Crude oil prices gained as Israeli strikes on Lebanon and the ongoing closure of the Strait of Hormuz strained diplomatic efforts, but prices were still on track to drop more than 10% for the week after the US and Iran agreed to a two-week ceasefire,” said Jigar Trivedi, Senior Research Analyst at IndusInd Securities.
According to him, the market will focus on US-Iran talks, and if the talks fail, crude oil prices may appreciate. However, a correction is due in oil if the peace talks go successfully.
Meanwhile, US President Donald Trump warned Iran over imposing transit fees in the Strait of Hormuz, criticizing its handling of oil flows. The crucial waterway remains largely closed as shipowners wait for clearer guidance on access.
Ship traffic through the strait stood at well below 10% of normal volumes on Thursday despite the ceasefire as Tehran asserted its control by warning ships to keep to its territorial waters while doing so, Reuters reported.
Additionally, attacks on Saudi energy facilities have cut the kingdom’s oil production capacity by around 600,000 barrels per day and throughput on its East-West Pipeline by about 700,000 bpd, Saudi state news agency SPA reported, citing an official source.
Trivedi said that the outlook for crude oil price remains bearish.
“MCX crude oil price may find support at ₹9,000 - ₹8,800 zone, while resistance is seen at ₹9,250 - ₹9,400 zone. Support for WTI crude oil price is seen at $95 - $90, while resistance is placed at $100 - $110 zone,” Trivedi said.
According to Ponmudi R, CEO of Enrich Money a sustained move above ₹9,200 could drive MCX crude oil prices toward the ₹9,400 – ₹9,500 range, with further potential to test ₹9,600 – ₹9,800.
“On the downside, a break below ₹9,000 may extend the decline toward ₹8,800 – ₹8,600, and potentially ₹8,200. Overall, the structure appears to be transitioning from a bullish phase to a consolidation phase, with the earlier sharp spike giving way to a more stabilised price action,” said Ponmudi R.
Catch Live Stock and Commodity Market News here
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.