Indian crude basket to average $87/bbl, OMCs to bear the brunt as oil surges 6% on Israel-Hamas war
Also Read: Global oil market sensitive to Israel-Hamas war; Russia ready to boost supplies to Saudi Arabia: Novak Brent futures settled up $4.89, or 5.7 per cent, at $90.89 per barrel. US West Texas Intermediate (WTI) crude gained $4.78, or 5.8 per cent, to $87.69 a barrel. Both benchmarks posted their highest daily percentage gains since April.
Brent also recorded a weekly gain of 7.5 per cent, its biggest such increase since February. WTI climbed 5.9 per cent for the week, according to news agency Reuters. Back home, on the Multi Commodity Exchange (MCX), crude oil futures due for a October 19 expiry, settled 5.45 per cent higher at ₹7,272 per bbl, having swung between ₹6,962 and ₹7,278 per bbl during the session so far, against a previous close of ₹6,896 per barrel.
-The conflict in the Middle East has had little impact on global oil and gas supplies so far, and Israel is not a big producer. Investors and market observers, however, are assessing how it could escalate and what it might mean for supplies from nearby countries in the world's top oil producing region. -Also boosting prices was the US government's decision of imposing the first sanctions on owners of tankers carrying Russian oil priced above the G7's price cap of $60 a barrel, to close loopholes in the mechanism designed to punish Russia for its invasion of Ukraine.
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