Ukraine launched large-scale drone attacks on Russia, targeting critical oil infrastructure, adding to concerns over potential supply disruptions

New Delhi

Crudeoil futures rose over 3 per cent to Rs 9,514 per barrel on Thursday, tracking firm global trends amid escalating tensions in West Asia and concerns over potential supply disruptions, lifting rates.

Besides, Brent oil was trading above $112 per barrel after the US State Department ordered its non-emergency diplomatic staff and their families to leave Saudi Arabia as the Gulf kingdom faces a barrage of near-daily attacks.

On the Multi Commodity Exchange, crude oil futures for the November delivery appreciated by Rs 306, or 3.32 per cent, to Rs 9,514 per barrel. The December contract also advanced Rs 235, or 2.59 per cent, to Rs 9,302 per barrel on the commodities bourse.

“Crude oil prices have inclined by over 2 per cent amid concerns over a re-escalation of the West Asia conflict, which could lead to supply disruptions in the region,” said Aamir Makda, Commodity & Currency Analyst-Technical Research at Choice Broking. He added that Ukraine had launched large-scale drone attacks on Russia this week, targeting critical oil infrastructure, adding to concerns over potential supply disruptions.

In global markets, Brent oil futures for the December delivery gained $3.41, or 3.13 per cent, to $112.23 per barrel on the Intercontinental Exchange (ICE). Meanwhile, West Texas Intermediate crude oil for the same month’s contract on the New York Mercantile Exchange (NYMEX) increased by $2.48, or 2.55 per cent, to $99.63 per barrel. “Crude continues to behave like a healthy bull market as Brent hovers around $112 per barrel in overseas trade on Thursday,” said Anindya Banerjee, Head of Commodity and Currency Research at brokerage platform Kotak NEO.

Market concerns intensified after the US State Department ordered non-emergency diplomatic staff and their families to leave Saudi Arabia, which has faced repeated attacks amid escalating tensions with Yemen’s Houthis. Speculation over a possible joint US-Israeli military operation has intensified following US Defense Secretary Peter Hegseth’s visit to Tel Aviv for talks with Prime Minister Benjamin Netanyahu. According to reports, the two countries had developed plans for a “short but intensified operation”.