The rally was triggered by a sharp decline in crude prices after US President Donald Trump said a peace agreement could be signed as early as this weekend
A Bloomberg report said that the US and Iran are edging closer to signing an agreement to reopen the Strait of Hormuz as the Group of Seven world leaders are set to meet next week.
As per Fitch Ratings' estimates, Brent crude oil is likely to average $100-110/bbl in May-July, before falling to $80/bbl in August, and to about $70/bbl from September.
However, in the past one month, the Nifty Auto index underperformed the market and fell 3.6 per cent, as against 2.7 per cent decline in the Nifty 50 as of June 11, 2026.
The only exception has been 1998 (CY98) when the BSE Sensex slipped 16.5 per cent as market sentiment was dented due to Pokhran nuclear tests in May and the ensuing economic and trade sanctions.
The average trading volumes at the Oil India counter jumped over five-fold, with a combined 13.46 million equity shares changing hands on the NSE and BSE in Wednesday's intra-day trade.
The Supertrend indicator remains in sell mode, while prices are hovering around the short-term moving average zone, suggesting the absence of a strong directional trend.
For now, the oil market remains at a crossroads-pulled in opposite directions by forces that are both powerful and persistent, with no clear resolution in sight
Possible steep hike in oil & gas prices could lead to further rise in inflation, which, in turn, could push up bond yields, and hence, slowdown in banking credit growth.
Governments around the globe coordinated a historic release of strategic reserves, while Gulf producers rerouted shipments through alternative export routes
The near-term outlook for Brent crude through Q3 2026 is likely to remain range-bound in the $90-115/bbl band, with risks skewed slightly towards a higher floor price for crude oil
Even a successful reopening may not bring oil prices down sharply, as the scale of disruption and the time required for markets to rebalance will keep oil elevated in the range of $80-95 range.
Brent futures settled up $1.81, or 1.89 per cent, at $97.81 a barrel, while US West Texas Intermediate crude climbed $2.26, or 2.41 per cent, to $96.02
Gulf's flagship national oil companies have issued stark timelines. Saudi Aramco CEO Amin Nasser warned that oil market will not normalise until 2027 if Hormuz disruptions persist past mid-June 2026.
Brent futures rose $1.05, or 1.09 per cent, at $97.05 a barrel, while US West Texas Intermediate (WTI) crude rose $1.01, or 1.08 per cent, to settle at $94.77
Brent crude futures inched up 6 cents, or 0.06 per cent, to $95.04 a barrel at 0001 GMT, while US West Texas Intermediate fell 17 cents, or 0.18 per cent, to $91.99 a barrel
