Crude Oil Prices Fluctuate Amid Global Tensions and Sanctions

International crude oil prices saw fluctuation on Friday, swinging between minor gains and losses, as analysts pointed to mild profit booking as the primary cause. Despite the volatility, analysts dismissed any sense of panic among global buyers, even as the US tightened sanctions on Russia, a major energy supplier.

As of the latest data, Brent oil futures rose by 0.3% to USD 66.19 per barrel, a slight increase from previous levels, while WTI oil futures climbed 0.36% to USD 62.00 per barrel. Thursday marked a dramatic rise in oil prices, with Brent crude surging 5% following reports that Chinese state-owned oil companies had stopped purchasing Russian oil, influenced by US sanctions against Rosneft and Lukoil.

Throughout the week, Brent oil futures have leaped approximately 8%, driven by US sanctions and resultant supply concerns. Russian President Vladimir Putin criticized the sanctions, suggesting they were counterproductive and stressing the potential for cooperation between Russia and the United States beyond these pressure tactics.

The sanctions freeze US-based assets of the involved Russian companies and bar American entities from conducting business with them, aiming to curb Russia's financial capabilities for wartime efforts. Market analysis revealed that these sanctions, alongside EU restrictions and ongoing conflict in Ukraine, could amplify supply disruption fears, marking one of WTI's strongest weeks since June.

Rahul Kalantri of Mehta Equities noted that Chinese companies had suspended seaborne imports while Indian refiners also cut purchases, reflecting the impact of the sanctions. Further volatility in crude prices is anticipated, with support levels pegged at USD 60.50-59.70 and resistance at USD 62.00-62.70. In rupee terms, resistance is anticipated at Rs 5,485-5,535, with support at Rs 5,360-5,260.

According to Axis Securities, crude prices found an additional lift as former President Donald Trump hinted India might stop Russian oil imports ahead of a potential US-China meeting, two factors likely to influence global demand. (ANI)