Crude Oil Rebounds Amid Geopolitical Uncertainty

Crude Oil Prices Rebound 3% in Futures Trade Amid West Asia Supply Concerns​

Oil Futures Recover After Sharp Decline in Previous Session​

Crude oil prices rebounded sharply in futures trading on Tuesday, March 17, rising by ₹261 to ₹8,981 per barrel on the Multi Commodity Exchange (MCX), supported by firm global cues and persistent uncertainty over supply disruptions linked to the ongoing conflict in West Asia.

The March contract recorded a 3% gain with a trading turnover of 12,183 lots. This recovery follows a steep decline in the previous session, where prices had dropped by ₹332, or nearly 4%, to settle at ₹8,720 per barrel.

April Contract Gains Momentum on MCX​

The April crude oil contract also moved higher, advancing by ₹305, or 3.52%, to ₹8,978 per barrel, with a trading volume of 13,778 lots. In the prior session, the contract had slipped by ₹270, or 3%, to close at ₹8,673 per barrel.

Market participants attributed the rebound to a technical recovery after the recent correction, as traders continued to assess geopolitical developments and their implications for global oil supply.

Global Oil Benchmarks Surge​

In the international market, benchmark crude prices witnessed strong gains. Brent crude futures for May delivery rose by USD 3.32, or 3.31%, to USD 103.53 per barrel. Meanwhile, West Texas Intermediate (WTI) crude for May delivery climbed nearly 4% to USD 96.09 per barrel in New York.

Geopolitical Tensions Keep Markets Volatile​

Crude prices have remained highly volatile as investors closely monitor developments in West Asia. The recent rebound comes after a sharp fall on Monday, when oil prices declined significantly following reports that several tankers had safely navigated the Strait of Hormuz, easing immediate concerns over supply disruptions.

However, uncertainty continues to persist due to elevated geopolitical tensions in the region, keeping traders cautious.

Diplomatic Efforts and Strategic Reserves in Focus​

According to market inputs, India is actively negotiating additional vessels, while multiple countries are engaged in back-channel discussions with Iran to ensure safe maritime transit. Reports have also indicated the establishment of a direct communication channel between Washington and Tehran, suggesting ongoing diplomatic efforts to avoid further escalation.

On the supply side, the United States is preparing to release the first tranche of its emergency crude reserves to stabilise energy markets. The International Energy Agency has also indicated readiness to tap into global stockpiles if required.

IEA Executive Director Fatih Birol stated that member countries could release more oil beyond the 400 million barrels already announced, noting that an additional 1.4 billion barrels remain accessible in reserves and industry stocks.

Tight Supply Conditions Persist Globally​

Before the escalation of tensions involving Iran, global oil consumption stood at approximately 101 million barrels per day. Brent crude has continued to trade above the USD 100 per barrel mark, underscoring the tight supply environment in global energy markets.