International crude oil prices traded higher on Monday as persistent fears of supply disruptions in West Asia kept markets on edge, with the ongoing US-Israel-Iran conflict weighing on sentiment.
Brent crude futures rose as much as 2.01 per cent or $2.2, to $111.23 per barrel, hovering near a 52-week high. Similarly, US West Texas Intermediate (WTI) crude gained 3.53 per cent or about $4 to $115.48 by 10.20 am.
On the domestic front, crude oil futures on the Multi Commodity Exchange (MCX) (May 18 contract) were trading at Rs 9,276, up 0.9 per cent or Rs 83. The contract touched an intraday high of Rs 9,335, rising 1.54 per cent or Rs 142.
The surge follows a sharp rally in the previous session, when WTI surged over 11 per cent and Brent climbed nearly 8 per cent — their biggest single-day gains since 2020 — amid escalating geopolitical tensions.
Analysts said crude oil continues to remain a key driver for markets, with prices holding firm amid ongoing supply concerns.
Globally, US crude is trading near the $110–$112 range, close to a key resistance zone. According to them, a breakout above $115 could trigger a rally towards $118–$120 levels.
"On the downside, a fall below $109 may lead to a correction towards $106, with strong support placed around $100–$102. The overall trend remains bullish as long as these support levels hold," they added.
Tensions intensified after US President Donald Trump warned of severe consequences if Iran fails to reopen the Strait of Hormuz by his Tuesday deadline, raising concerns over potential disruptions to global oil supplies.
OPEC+ has agreed to increase output by 206,000 barrels per day in May. However, the move is unlikely to significantly ease supply concerns in the near term.
Meanwhile, domestic equity markets traded in the red, with the Sensex falling 529 points or 0.72 per cent to 72,790, hitting an intraday low, and Nifty declining 150 points or 0.66 per cent to 22,561, logging an intraday low in early trade.
(With inputs from IANS)
