New Delhi, April 1 Crude oil prices fell by more than 3 percent to Rs 9,265 per barrel in futures trading on Wednesday as investors booked profits after US President Donald Trump said the military could end its offensive against Iran in two to three weeks.
On the Multi Commodity Exchange (MCX), crude oil for the April delivery decreased by Rs 302, or 3.16 percent, to Rs 9,265 per barrel.
Similarly, the May contract also declined by Rs 320, or 3.56 percent, to Rs 8,661 per barrel, reflecting broad-based weakness across near-term contracts.
Analysts said crude prices faced selling pressure during the session as markets turned cautious.
Crude oil prices faced selling pressure on Wednesday session as cautious sentiment emerged despite persistent tensions in West Asia, Kaveri More, Commodity Analyst at Choice Broking, said.
The decline tracked global energy benchmarks, where crude futures slipped below the USD 100-per barrel mark. West Texas Intermediate for the May contract slipped by USD 2.23, or 2.2 percent, to USD 99.15 per barrel, while Brent Crude for the June contract slipped by 1.59 percent, to USD 102.32 per barrel.
Crude oil prices remained volatile as escalating geopolitical tensions in West Asia continued to dominate market sentiment, she added.
Meanwhile, oil prices have been highly sensitive to developments in the Strait of Hormuz, a key shipping route for global energy supplies.
OPEC's oil output reportedly plunged by 7.3 million barrels per day (bpd) month-on-month to 21.57 million bpd in March, the lowest level since June 2020, after the Iran conflict disrupted exports through the Strait of Hormuz, forcing significant supply cuts from key producers including Kuwait, Iraq, Saudi Arabia, and the UAE.
However, prices found some support from comments made by President Trump amid ongoing tensions in the Persian Gulf, while concerns over troop build-ups, stalled diplomatic negotiations, and strikes on key infrastructure such as Kuwait International Airport kept risk premiums elevated, More said.
At the same time, Iran's conditional openness to ending hostilities and improved vessel traffic through the Strait of Hormuz eased immediate supply concerns, limiting further upside.
Crude prices may remain moderately bearish in the near term, with markets expected to stay highly sensitive to geopolitical headlines and supply developments.
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