Oil prices may breach $100 amid geopolitical tensions: Mirae Asset

Mirae Asset Sharekhan's analysis suggests that the global crude oil market is poised to remain in deficit over the medium term, driven by supply concerns and geopolitical uncertainties in critical energy corridors. The brokerage identifies the Strait of Hormuz and Russia-related risks as key factors that could push crude prices higher, potentially breaching the $100-per-barrel mark.

The anticipated supply deficit is expected to persist through 2026, according to the brokerage's outlook. This structural imbalance in the market reflects concerns about potential disruptions to global oil flows from major producing regions and transit points, which remain vulnerable to geopolitical tensions.

For Indian markets and consumers, rising crude oil prices carry significant implications. Higher crude costs typically translate into increased fuel prices at the pump and higher input costs for industries, which can pressure inflation and corporate margins. India, which imports nearly 80 percent of its crude oil requirements, remains particularly exposed to international price movements.

The Strait of Hormuz, through which roughly one-third of globally traded seaborne crude passes, continues to be a flashpoint for supply concerns. Meanwhile, Western sanctions against Russian oil production add another dimension to potential supply constraints. Market participants are monitoring these geopolitical developments closely as they assess crude price trajectories and energy security implications for the coming years.