Crude oil futures closed higher in the domestic market on Friday after a U.S. airstrike on Syria, though gains were capped by expectations risks to Middle East output would be limited.
Prices often jump when tensions rise in the Middle East, where almost 40% of the world’s crude oil is produced. But analysts also said the initial knee-jerk reaction to the airstrike may have been overdone given Syria’s role as a very minor oil producer and the lack of any apparent immediate threat of a spillover that would affect bigger producers.
At the MCX, crude oil futures for April 2016 contract closed at Rs 3362 per barrel, up by 0.33 per cent, after opening at Rs 3364, against a previous close of Rs 3351. It touched the intra-day high of Rs 3399.