Global crude oil prices advanced on Tuesday, hovering near a five-month high as traders continued to factor in a geopolitical risk premium amid attacks on vessels in the Gulf, renewed Houthi strikes and escalating tensions involving Iran.
Brent crude — International oil benchmark — gained as much as 0.48 per cent or 53 cents to $110.08 a barrel after touching $110.70 in the previous session, highest level since May 20.
Meanwhile, US West Texas Intermediate (WTI) crude rose 0.46 per cent or 45 cents to $99 a barrel.
Crude prices also drew support from renewed Houthi attacks on a Yemeni military training camp as well as strikes targeting Saudi energy, airport and military facilities.
Moreover, Brent prices have surged nearly 80 per cent so far this year as widening conflict involving the United States and Iran, alongside the escalating Russia-Ukraine war, disrupted energy supplies and heightened concerns over global crude flows.
According to shipping tracking firm Kpler, at least 18 vessels were attacked over the past two weeks, helping to keep the risk premium embedded in crude prices.
However, exports from Gulf producers have continued to recover.
US Energy Secretary Chris Wright has said crude flows had rebounded to about 80 per cent of pre-war levels, although shipments of refined products remained constrained, according to reports.
Meanwhile, Iraq’s oil minister said the country’s crude exports have exceeded 3.4 million barrels per day so far this month. Export volumes are now nearing pre-war levels after Iraq offered deep discounts relative to regional benchmark prices.
On the domestic front, commodity exchanges are closed in the morning session due to Dussehra.
Multi Commodity Exchange of India (MCX) will not remain closed for the entire day. But trading will be suspended from 9 am to 5 pm and reopen for the evening session from 5 pm.
Investors will be able to trade commodities such as gold, silver, crude oil and base metals during the evening session.
Notably, domestic equity markets will remain closed as trading is suspended across major segments on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
