Energy Preview: Crude races up on prolonged Middle-East concerns, EIA reports sharp spurt in US Crude storage

WTI Crude oil prices firmed up on worries over a prolonged Middle East conflict after Iranian stated that it is not in direct negotiations with the US. Two-week lows around $85 per barrel are capping downside for the counter. A break above $90 per barrel boosted the sentiments and quick gains emerged to take WTI Crude around $94 per barrel, up around 4% on the day. This can trigger a sharp bounce in MCX Crude at the opening moves in evening session today. MCX Crude oil futures lost 2.70% yesterday to close at Rs 8499 per barrel. The extended selloff in oil yesterday was due to a jump in US crude storage. EIA data showed that US crude stocks soar 6.9 million barrels to around 456.2 million barrels, highest since Q3 2024. US commercial crude oil inventories increased for a fifth consecutive week.

Natural Gas looks steady ahead of the US storage data. US Natural Gas futures are trading at $2.94 per mmbtu, up 1% on the day. MCX Natural Gas futures closed flat at Rs 276.3 per mmbtu, down marginally on the day.

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