Crude Oil Prices Decline Over 4% on Geopolitical Developments
Crude Oil Futures Drop in Futures Trading
New Delhi, March 25 – Crude oil prices experienced a significant decline on Wednesday, falling by more than 4 per cent to Rs 8,340 per barrel in futures trading on the Multi Commodity Exchange (MCX).The April contract for crude oil on the MCX decreased by Rs 396, or 4.5 per cent, to Rs 8,340 per barrel. The May contract also saw a decline of Rs 305, or 3.58 per cent, closing at Rs 8,209 per barrel.
Analysts attributed the price drop to a shift in global energy markets driven by evolving geopolitical developments in West Asia. Aamir Makda, Commodity & Currency Analyst at Choice Broking, noted a “gap down” opening due to bearish sentiment. He highlighted that this decline is largely influenced by a changing geopolitical landscape.
Globally, West Texas Intermediate (WTI) crude futures for the May contract decreased USD 3.21, or 3.48 per cent, to USD 89.14 per barrel on the NYMEX. Brent Oil for June delivery fell USD 4.65, or 4.64 per cent, to USD 95.58 per barrel in New York.
Reports indicated that the US may lift trade sanctions on Iran in exchange for a nuclear deal, easing global supply concerns and war-related uncertainty. A slight dip in the dollar index to 98.79 also contributed to the downward pressure on oil prices.
US President Donald Trump has expressed optimism regarding a potential deal with Iran, with Vice President JD Vance and Secretary of State Marco Rubio reportedly engaged in negotiations. However, Tehran has not yet formally responded, with messages exchanged through intermediaries.
In the previous trading session, crude oil prices had risen nearly 5 per cent, partially recovering earlier losses following reports of potential US troop deployment to West Asia, which had heightened concerns about supply disruption.
Contrasting media reports from the West Asia have kept investors cautious, with analysts emphasizing that uncertainty surrounding potential negotiations continues to drive volatility in energy markets.
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