- Crude oil futures declined after Trump eased US-Iran tensions.
- Trump predicted no full-scale war, Iran warned Strait closure.
- Global crude prices also fell; US inventories rose unexpectedly.
New Delhi: Crude oil futures fell over 1 per cent to Rs 6,963 per barrel on Thursday after President Donald Trump said he did not expect the conflict between the US and Iran to escalate into a full-scale war.
On the Multi Commodity Exchange (MCX), crude oil contracts for July delivery declined Rs 110, or 1.56 per cent, to Rs 6,963 per barrel in a business turnover of 19,121 lots.
The August contract also fell Rs 108, or 1.53 per cent, to Rs 6,970 per barrel, with a turnover of 3,860 lots.
Traders said weak global benchmarks triggered profit-booking in crude oil after the recent sharp rally.
At the NATO Summit in Ankara, Turkiye, Trump said he did not believe Washington and Tehran would return to full-scale war.
“I don’t think it’s going to start again,” he said, adding that he expects oil prices to decline as tankers continue to move through the Strait of Hormuz.
However, Iran warned that it could close the Strait of Hormuz and respond with overwhelming force in the event of fresh attacks.
In the international markets, Brent crude for September delivery slipped to USD 77.62 per barrel on the ICE exchange.
In addition, West Texas Intermediate (WTI) crude for August delivery also traded lower at USD 73.14 per barrel on the NYMEX.
Earlier, crude prices had rallied after Trump declared the fragile truce between Washington and Tehran “over” following renewed attacks across the Persian Gulf.
“However, gains were limited after the Energy Information Administration reported a 3 million-barrel increase in US crude oil inventories, against expectations of a 2.4 million-barrel draw,” Deveya Gaglani, Senior Research Analyst – Commodities at Axis Direct, said.
Analysts said crude oil is likely to remain highly volatile in the near term as investors track developments in West Asia, particularly around the Strait of Hormuz, along with inventory data and signals on global demand.
(Disclaimer: This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)
