New Delhi: Crude Oil prices rose by Rs 42 to Rs 5,197 per barrel in the futures trade on Monday amid cautious sentiment over geopolitical developments.
On the Multi Commodity Exchange (MCX), crude oil futures for January delivery rose by Rs 42, or 0.81 per cent, to Rs 5,197 per barrel in a business turnover of 18,270 lots.
Similarly, the February contract increased by Rs 37, or 0.72 per cent, to Rs 5,202 per barrel in 3,011 lots.
In the international markets, West Texas Intermediate (WTI) crude oil futures went up by 0.24 per cent to USD 57.46 per barrel, while Brent Crude was trading marginally higher at USD 60.78 per barrel in New York.
“WTI crude oil futures hovered around USD 57.2 per barrel on Monday, moving between gains and losses as investors assessed the implications of recent US military action in Venezuela, including the capture of President Nicolas Maduro,” Rahul Kalantri, VP Commodities, Mehta Equities Ltd, said.
The market sentiment remains cautious amid concerns over potential supply disruptions, given Venezuela’s status as the country with the world’s largest proven oil reserves, he added.
Market experts believe the immediate impact on global supply may be limited, as Venezuela’s current output stands below one million barrels per day, representing less than one per cent of total global production.
Meanwhile, rising concerns that the US may intensify pressure on other oil-producing nations, such as Iran, could lead to tighter supply conditions later in the year, Kalantri said.
He added that some reports suggest the White House has encouraged US companies to support the revival of Venezuela’s oil industry, particularly for firms seeking compensation for assets expropriated nearly two decades ago.
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