NEW DELHI: Crude oil prices rebounded in futures trade on Tuesday, rising by Rs 204 to Rs 8,549 per barrel amid uncertainty over geopolitical developments in West Asia.
On the Multi Commodity Exchange (MCX), crude oil for April delivery increased by Rs 204, or 2.44 per cent, to Rs 8,549 per barrel.
In the previous session, crude plunged by Rs 1,186, or nearly 13 per cent, to hit an intraday low of Rs 8,072 per barrel before settling at Rs 8,345, down by Rs 913, or 9.86 per cent on the MCX.
Analysts said crude oil prices remained volatile as markets weighed conflicting developments around Iran and the Strait of Hormuz.
Globally, West Texas Intermediate (WTI) crude for the May contract gained USD 2.68, or 3.04 per cent, to USD 90.81 per barrel, while Brent Oil for June delivery rose USD 2.80, or 2.92 per cent, to USD 98.72 per barrel in New York.
Kotak Securities said oil prices moved higher as investors refocused on supply risks following remarks from Iranian Deputy Speaker Ali Nikzad suggesting that conditions in the Strait of Hormuz may not normalise soon.
The brokerage firm also highlighted reports suggesting that several Gulf countries could be nearing a decision to enter the conflict, further intensifying supply concerns.
WTI crude experienced sharp volatility on Monday plunging over 10 per cent to around USD 84.3 per barrel after Trump indicated that the US and Iran had engaged in talks and announced a halt to strikes on Iranian power and energy infrastructure.
However, prices saw a modest recovery and closed above USD 88 per barrel as Iranian state media denied any direct negotiations with Washington has kept uncertainty elevated.
According to analysts, the evolving situation around the Strait of Hormuz continues to drive sharp swings in crude prices.