Crude oil prices in India fell nearly 6% on Monday, with MCX crude dipping below ₹8,800 per barrel amid renewed optimism over US-Iran peace talks, according to livemint.com. Brent crude futures declined 5.7% to $97.69 a barrel, while US West Texas Intermediate dropped 6% to $90.85 a barrel, marking their lowest levels since early May.
The decline followed early trade movements where MCX crude oil for June futures opened 4% lower at ₹8,802 per barrel, down from the previous close of ₹9,168. Prices slid further to a low of ₹8,622 per barrel as market sentiment improved on the prospect of a US-Iran peace deal and the potential reopening of the Strait of Hormuz, a key oil transit route, livemint.com reported.
This drop in crude prices is significant given the geopolitical tensions that have kept oil markets volatile. The Strait of Hormuz is a critical chokepoint for global oil shipments, and any easing of conflict in the region tends to reduce risk premiums on oil prices. The current levels represent a notable retreat from recent highs, reflecting shifting market dynamics and the impact of diplomatic developments on energy costs.
Looking ahead, traders and analysts will closely monitor the progress of US-Iran negotiations and any official announcements regarding the Strait of Hormuz. Further developments could influence crude prices in the near term, with potential implications for domestic fuel pricing and inflation trends in India.