Crude oil futures fell 3 per cent to Rs 7,811 per barrel on Friday, tracking weak global benchmarks as improving tanker movements through key West Asia shipping routes eased concerns over immediate supply disruptions <a href="https://www.mid-day.com/news/world-news/article/us-and-iran-launch-new-missile-strikes-as-fears-of-wider-middle-east-war-grow-23642479" target="_blank" rel="none noopener">despite lingering geopolitical risks</a>.
On the Multi Commodity Exchange (MCX), crude futures for August delivery depreciated Rs 226, or 2.81 per cent, to Rs 7,811 per barrel.
Similarly, the September contract also dipped by Rs 190, or 2.43 per cent, to Rs 7,616 per barrel on the commodities bourse.
Traders said signs of improving oil shipments through the Strait of Hormuz and the Bab el-Mandeb Strait reduced the geopolitical risk premium in crude, prompting selling in domestic futures.
"<a href="https://www.mid-day.com/business/business-news/article/multi-commodity-exchange-alerts-investors-against-fake-telegram-channel--23640273" target="_blank" rel="none noopener">MCX</a> Crude oil prices declined on Friday, tracking weakness in the energy market as crude shipments through key West Asia maritime routes improved despite limited progress in US-Iran negotiations," said Pinky Yadav, Commodity Fundamental Analyst at Choice Broking.
In the international markets, Brent oil futures for September delivery declined USD 1.81, or 2.03 per cent, to USD 87.22 per barrel on the Intercontinental Exchange.
The West Texas Intermediate for the September contract also slipped USD 1.80, or 2.15 per cent, to USD 81.79 per barrel on the New York Mercantile Exchange.
Yadav said crude prices weakened globally after tanker traffic through the Strait of Hormuz increased, with more vessels transporting millions of barrels of oil. At the same time, Saudi tankers also resumed movement through the Bab el-Mandeb Strait.
According to Kpler shipping data, 25 commodity vessels transited the Bab el-Mandeb Strait on Thursday, though traffic through the Hormuz remained limited at two tankers.
Analysts said the improvement in shipping activity followed last week's threat by <a href="https://www.mid-day.com/news/world-news/article/west-asia-conflict-yemen-pm-urges-global-action-against-houthi-attacks-as-red-sea-shipping-threats-escalate-23641763" target="_blank" rel="none noopener">Yemen's Houthi to blockade Saudi vessels</a>, which had briefly pushed crude prices above the USD 100-per barrel level.
However, concerns over global disruptions persisted after fresh strikes again halted crude loadings at Kazakhstan's key Black Sea export terminal, Yadav said. She added that Saudi Arabia has proposed an international maritime coalition involving representatives from 43 countries to safeguard Red Sea shipping following the Houthi blockade.
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