Crude oil prices experienced a significant increase in the prior session, closing 5.08% higher at Rs 8,788, driven by heightened supply concerns stemming from disruptions in the Strait of Hormuz, an essential global oil transit route. Restrictions on tanker traffic have compelled several significant Middle Eastern producers, such as Saudi Arabia, the United Arab Emirates, Kuwait, and Iraq, to reduce output as storage facilities rapidly reach capacity due to export bottlenecks.

Prior to the intensification of tensions concerning Iran, Saudi Arabia had already ramped up production as a component of its contingency strategy. Surveys indicate that production from members of the Organization of the Petroleum Exporting Countries increased by 530,000 barrels per day in February, reaching a total of 28.87 million barrels per day, with Saudi Arabia contributing an additional 250,000 bpd to this rise.

Shipping data indicated robust loading activity at Saudi export terminals, implying a notable increase in shipments in anticipation of the recent disruptions. In the interim, fundamental indicators present a mixed picture. Data from the U.S. Energy Information Administration indicated that U.S. crude inventories rose by 3.475 million barrels, totaling 439.3 million barrels, whereas gasoline stocks experienced a decline.

From a technical perspective, the market is experiencing short covering, as evidenced by a 3.01% decline in open interest to 17,352, accompanied by a price increase of Rs 425. Crude oil currently finds itself with immediate support at Rs 8,009, and a breach of this level could lead to a test of Rs 7,229. On the upside, resistance is observed at Rs 10,059, and a sustained movement above this threshold could propel prices toward Rs 11,329.