Crude oil futures hits lifetime high of Rs 6,311/ barrel

New Delhi: Crude oil prices on Friday rallied by Rs 578 to hit a lifetime high of Rs 6,311 per barrel on the Multi Commodity Exchange, tracking a sharp spike in global prices amid escalating tensions in the Middle East.

On the Multi Commodity Exchange (MCX), the most traded July delivery contracts of crude oil jumped by Rs 578 or 10.08 per cent to hit a fresh peak of Rs 6,311 per barrel in the morning trade.

Later, it traded at Rs 6,156 per barrel, up Rs 423 or 7.38 per cent, with an open interest lots of 6,907.

Crude Oil futures had on April 1 hit an all-time high of Rs 6,116 per barrel on the MCX.

Subsequently, the August contracts for crude oil futures appreciated by Rs 508 or 9 per cent to hit a lifetime high of Rs 6,156 per barrel on the bourse.

Analysts said rising geopolitical concerns and fears of supply disruption in key oil-producing regions have fuelled strong buying in crude futures.

Globally, West Texas Intermediate crude was trading 6.11 per cent higher at USD 72.20 per barrel. In the session, it rose USD 9.54 per barrel or 14.02 per cent to hit an intraday high of USD 77.58 per barrel.

Meanwhile, Brent Crude was trading at USD 74.11 per barrel, up by 6.85 per cent in the overseas markets. It climbed by USD 9.14 per barrel or 13.18 per cent to hit a day high of USD 78.50 per barrel.

"Crude oil futures surged over 10 per cent, the highest in two months, as escalating tensions between Israel and Iran sparked fears of severe supply disruptions.

"With Israel launching a pre-emptive strike and Iran vowing retaliation -- including potential attacks on US bases -- the threat to the Strait of Hormuz, a key global oil artery, looms large," Rahul Kalantri, Vice-President of Commodities at Mehta Equities, said.

"Supporting the price rally, US crude inventories fell more than expected, signalling robust demand. Additionally, weaker US inflation data also reinforced expectations of an interest rate cut by the Federal Reserve in September, potentially lifting future oil demand," Kalantri said.