Crude oil prices experienced a significant increase, rising by 4.69% to close at Rs 8,736, driven by ongoing supply disruptions in the Middle East that have heavily influenced market sentiment. Tensions persist as Iran refutes any involvement in negotiations with the U.S., countering previous assertions of potential advancement. The current circumstances have maintained elevated levels of uncertainty, particularly with the Strait of Hormuz remaining closed, a vital passage for international oil transportation.

In response, Saudi Arabia has increased exports from its Yanbu port to nearly 4 million barrels per day, redirecting crude through the East-West pipeline to circumvent disruptions. A significant portion of this supply is being allocated to Asian markets. Meanwhile, Japan is poised to utilize joint oil reserves as part of its emergency strategy to address supply shortages. Prices have surged to multi-year highs following recent military strikes, highlighting the severity of the disruption. In terms of data, U.S. crude inventories increased by 6.16 million barrels, reaching 449.3 million, which signifies the fourth consecutive weekly build.

Stocks at Cushing experienced an uptick, accompanied by a modest enhancement in refinery activity. Nonetheless, reductions in gasoline and distillate inventories indicate consistent demand. Russian production has seen a slight decline; however, exports to India are starting to rebound following a period of temporary sanction relief.

From a technical perspective, the market is experiencing new buying activity, as evidenced by a 2.05% increase in open interest, bringing it to 14,322. Immediate support stands at Rs 8,480, and a breach below this level could lead to a test of Rs 8,223. Resistance is positioned at Rs 8,917, and an upward movement beyond this threshold may propel prices toward Rs 9,097.