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Informist, Monday, Mar. 9, 2026

 

--MCX March crude oil hits new record high of INR 10,370 per barrel 

--MCX crude oil soars past INR 10,000/bbl for the first time 

 

MUMBAI – Crude oil futures on the Multi Commodity Exchange of India surged to a new record high Monday, going past the INR-10,000-per-barrel mark for the first time ever, as the ongoing hostilities in West Asia have led some major producers in the region to cut supplies. Concerns about a prolonged shutdown in the Strait of Hormuz, a critical chokepoint through which around 20% of world's oil flows, have led to a sharp rise in international oil prices as well.

 

At 1108 IST, the most-active March crude oil futures on the domestic bourse was at INR 9,990 per barrel, up 19.5%, after hitting a record high of INR 10,370 per barrel earlier in the day. Prices of Brent and West Texas Intermediate crude oil have risen above $100 per barrel for the first time since 2022. Brent crude prices hit a high $119.50 per barrel and WTI crude hit a high of $119.48 per barrel, earlier in the day.

 

"This is not just an oil price shock; it is also an oil quantity shock. Crude prices have surged nearly 65% in less than seven trading sessions, which is highly unusual," Anindya Banerjee, head of commodity and currency research at Kotak Securities, said in a note. "The last time we saw a comparable situation was during the oil crises in 1970s, when disruptions in physical supply triggered a structural surge in prices." 

 

Israel bombed some of Iran's oil storage facilities over the weekend, as the war in West Asia escalated. The US' attack on a desalination plant also raised threats to civilian infrastructure in the region amid the intensifying conflict.

 

Iraq, Kuwait, and the United Arab Emirates have started reducing oil production. Iraq, the first to start cutting supplies last week, has reportedly reduced output by around 1.5 million barrels per day. Meanwhile, over the weekend, Kuwait reportedly cut output by as much as 300,000 barrels per day, according to Warren Patterson, head of commodities strategy at ING Economics.

 

"Going forward, there are two broad paths for the oil market. If the Strait of Hormuz becomes operational again and flows normalize, prices could correct sharply as the supply shock fades. However, if the disruption persists for several weeks, oil prices could rise further until they begin to destroy demand by inflicting serious damage on the global economy through inflation, tighter financial conditions, and disruptions to trade and industrial activity," Banerjee said.

 

Amid surging oil prices, US President Donald Trump said Monday in a post on social media platform Truth Social that the short-term rise was "a very small price to pay" for the US and the world, and crude prices would fall once the Iran nuclear threat was over.

 

"The bottom line is that, as long as we don't see oil moving through the Strait of Hormuz, oil prices will only move higher," Patterson said.  End

 

US$1 = INR 92.25

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Ashutosh Pati

Edited by Tanima Banerjee

 

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