Hot Commodities: Oil slips nearly 2% on profit taking

Crude oil slipped below $101 per barrel on Friday on correction ahead of, but remained on track for a sharp weekly gain as the escalating US-Iran conflict heightened concerns over prolonged supply disruptions. WTI crude futures settled at $102.48 yesterday after surging more than 6% intraday to their highest level since May. Attacks near the Strait of Hormuz and renewed threats to Red Sea shipping added to market anxiety, while expectations of a prolonged conflict reduced hopes for a quick resolution. OPEC lowered its 2026 oil demand growth forecast, while Saudi output fell to its lowest level since 1990 amid the hostilities. The EIA reported a 0.4 million-barrel draw in US crude inventories, while severely reduced flows through the Strait of Hormuz further tightened global supply conditions. WTI and Brent oil futures slipped by nearly 2% to trade at $100.37 and $ 105.06 per barrel respectively, whereas the MCX October oil futures were down 0.3% at Rs 9690 per barrel.

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