Crude oil futures fell 3 per cent to ₹7,811 per barrel on the Multi Commodity Exchange (MCX) on Friday, tracking weak global benchmarks as improving tanker movements through key West Asia shipping routes eased concerns over immediate supply disruptions despite lingering geopolitical risks, according to PTI.
Price action across exchanges
The August delivery contract on MCX depreciated ₹226, or 2.81 per cent, to ₹7,811 per barrel, while the September contract dipped ₹190, or 2.43 per cent, to ₹7,616 per barrel, PTI reported. International benchmarks followed the same path: Brent oil futures for September delivery declined $1.81, or 2.03 per cent, to $87.22 per barrel on the Intercontinental Exchange, and West Texas Intermediate for the September contract slipped $1.80, or 2.15 per cent, to $81.79 per barrel on the New York Mercantile Exchange.
| Contract | Exchange | Price | Change | % Change |
|---|---|---|---|---|
| MCX August crude | Multi Commodity Exchange | ₹7,811/barrel | -₹226 | -2.81% |
| MCX September crude | Multi Commodity Exchange | ₹7,616/barrel | -₹190 | -2.43% |
| Brent September futures | Intercontinental Exchange | $87.22/barrel | -$1.81 | -2.03% |
| WTI September futures | New York Mercantile Exchange | $81.79/barrel | -$1.80 | -2.15% |
Shipping routes ease supply fears
Traders said signs of improving oil shipments through the Strait of Hormuz and the Bab el-Mandeb Strait reduced the geopolitical risk premium in crude, prompting selling in domestic futures.
"MCX Crude oil prices declined on Friday, tracking weakness in the energy market as crude shipments through key West Asia maritime routes improved despite limited progress in US-Iran negotiations," said Pinky Yadav, Commodity Fundamental Analyst at Choice Broking.
Yadav added that crude prices weakened globally after tanker traffic through the Strait of Hormuz increased, with more vessels transporting millions of barrels of oil, and Saudi tankers resumed movement through the Bab el-Mandeb Strait. According to Kpler shipping data, 25 commodity vessels transited the Bab el-Mandeb Strait on Thursday, though traffic through the Hormuz remained limited at two tankers.
Lingering disruptions and geopolitical risk
Analysts said the improvement in shipping activity followed last week's threat by Yemen's Houthi to blockade Saudi vessels, which had briefly pushed crude prices above the $100-per barrel level. However, concerns over global disruptions persisted after fresh strikes again halted crude loadings at Kazakhstan's key Black Sea export terminal, Yadav said.
She also noted that Saudi Arabia has proposed an international maritime coalition involving representatives from 43 countries to safeguard Red Sea shipping following the Houthi blockade.
Market context for traders
The Friday decline comes against a backdrop of rapidly shifting shipping data. The Kpler numbers cited in the PTI report show Bab el-Mandeb traffic at 25 commodity vessels on Thursday, while Hormuz remained limited at two tankers. For market participants tracking the physical crude market, the status of the Strait of Hormuz, the Bab el-Mandeb Strait, and Kazakhstan's Black Sea terminal will remain reference points cited by analysts in the report. The proposed 43-country maritime coalition for Red Sea safety, as outlined by Yadav, adds another element to the supply picture.
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