Crude oil prices extended their gains on Thursday as the latest developments involving Iran, the US and shipping in the Strait of Hormuz added to concerns over global oil supplies.
Brent crude, the international benchmark, was trading at $101.90 a barrel, up 0.68 per cent, while US West Texas Intermediate (WTI) gained 1.81 per cent to $97.79 a barrel.
The rise came after Iran said it had attacked 10 ships near the Strait of Hormuz. The statement followed the US sinking five Iranian oil tankers, while Iran's Revolutionary Guard Corps said it would intensify its response to any further attacks.
The latest attacks have put the spotlight back on the Strait of Hormuz and its role in global energy supplies.
Oil flows through the waterway have reportedly dropped to around one-fourth of pre-war levels after tanker strikes this week. The disruption has added to concerns over the availability and movement of crude in international markets.
With shipping activity through the key route affected, analysts have maintained a positive outlook for crude prices.
Crude oil on the domestic futures market also opened higher on Thursday. MCX crude was trading around Rs 9,140, gaining 0.45 per cent.
According to market experts, the contract was testing the Rs 9,150-Rs 9,200 resistance area after an extended rally.
A sustained move above Rs 9,200 could take prices towards Rs 9,350-Rs 9,400, analysts said. On the other hand, immediate support is placed at Rs 9,000-Rs 8,950, followed by Rs 8,800-Rs 8,750.
The MCX crude RSI was around 71. While the reading reflects strong momentum, its elevated level also suggests that prices could see some near-term consolidation or a pullback.
"Crude remains supported by the Strait of Hormuz disruption," experts said. They added that the near-term bias would remain strongly constructive as long as MCX crude stays above Rs 9,000.
WTI was trading above $96 a barrel after retreating from levels close to $98.
Analysts have identified $98 as an important level for the US benchmark. A sustained break above it could open the way for WTI to move towards $100.
On the downside, support is seen at $95-$94, followed by $92-$91.
The RSI for WTI stood at 69, suggesting that the broader upward trend remains intact despite the recent pullback.
According to analysts, a move above $98 could strengthen the bullish momentum, while a break below $95 may signal a deeper correction in the near term.
