• Source:JND
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Crude Price Outlook: The crude prices in the international market remained highly volatile ever since the commencement of war in the Middle East on February 28, tracking the commentary from both sides--- the US and Iran, and energy supply constraints through the Strait of Hormuz. In a week, the Brent Crude, the global oil benchmark, traded between a level of $87-88 per barrel and over $103 per barrel amid yes and no situations for the second round of peace talks between the US and Iran. 

Earlier last week, crude prices fell sharply after Iran announced the opening up of the Strait of Hormuz after they agreed to peace talks with the US in Islamabad, Pakistan. However, the talk ended without a conclusion, and a fresh tension erupted at Hormuz over the US decision to blockade the chokepoint. 

Expert Predicts Rs 25-30 Hike In Petrol, Diesel Prices 

Meanwhile, experts predict a hike of Rs 25 to Rs 30 in Petrol and Diesel prices post the conclusion of assembly polls in five states.  Kotak Institutional Equities had indicated a sharp increase in petrol and diesel prices after voting for assembly elections in states like West Bengal and Tamil Nadu ended.

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The financial firm noted that if crude oil trades around US$120 per barrel, the oil price may increase by Rs 25-28 per litre. 

Govt Denied Any Price Hike 

However, the government denied any rise in petrol and diesel prices. In a post on X, the Ministry of Petroleum and Natural Gas said that they don't have any plan to hike petrol and diesel prices by Rs 25-28 a litre soon after the assembly elections. 

Some news reports are suggesting a price hike of petrol and diesel. It is hereby clarified that there is no such proposal under consideration by the government," the Ministry of Petroleum and Natural Gas said in a post on X.

Crude Prices 

In the International market, Brent Crude continued trading at $103 per barrel this morning, jumping by over a per cent. While WTI Crude was trading at a level of Rs$ 93-94 per barrel. 

Meanwhile, in the domestic futures market, MCX Crude was trading nearly 2 per cent higher to a level of Rs 8,900 per barrel. At the time of writing, MCX Crude, May 18 expiry, was trading at Rs 8,899, up Rs 176 or 2.02 per cent. 

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"MCX Crude Oil is currently trading near the Rs 8,950 zone, with price action reflecting renewed bullish momentum following a sharp recovery from recent lows. Volatility remains elevated, with Rs 9,100 acting as immediate resistance. A sustained move above this level could open the path toward Rs 9,250–Rs 9,500," said Ponmudi R, CEO of Enrich Money.  


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