Mumbai: Global crude oil prices declined almost 3 per cent on Monday after US President Donald Trump said Washington would take steps to help clear vessels stranded in the Strait of Hormuz, though the lack of a breakthrough in US-Iran talks kept prices above the $100-mark.
International benchmark Brent crude slipped 66 cents or 0.61 per cent to $107.51 per barrel, while US West Texas Intermediate (WTI) fell $2.83 or 2.77 per cent to $99.11 a barrel.
On the domestic front, crude oil futures on the Multi-Commodity Exchange (MCX) were trading at Rs 9,621, down Rs 44, or 0.45 per cent, from the previous close.
The easing in oil prices came after Trump hinted at possible de-escalation in the West Asia conflict.
In a post on Truth Social, Trump said the US would help ensure safe passage for ships through the restricted waterway, enabling them to continue operations without disruption. He noted that several countries, many of them neutral and not involved in the conflict, had sought US assistance to free vessels stranded in the Strait of Hormuz.
However, despite the decline, crude prices remained elevated amid the absence of a peace agreement between Washington and Tehran, with shipping through the Strait of Hormuz still constrained. Negotiations between the two sides continued over the weekend, with both reviewing each other’s responses.
While the US is pushing for a nuclear agreement, Iran has suggested deferring nuclear discussions until after the conflict ends, along with a mutual easing of restrictions on Gulf shipping.
Meanwhile, the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) said on Sunday that seven member nations would increase output by 188,000 barrels per day in June, marking the third consecutive monthly hike.
However, the additional supply is unlikely to significantly impact the market in the near term, as disruptions linked to the Iran conflict continue to affect oil flows through the Strait of Hormuz.
On the equities front, both domestic and global markets showed positive momentum. Benchmark indices Sensex and Nifty were trading about 1 per cent higher in the morning session.
In Asia, key indices such as Japan’s Nikkei, Hong Kong’s Hang Seng and South Korea’s Kospi rose by up to 4 per cent.
IANS
