WTI also saw a firm trend with the futures traded at $ 101.480 per barrel, up 0.73% over its previous close.
Substantial fund inflows into commodities has seen crude prices rallying since the beginning of the year. Countries like India are significantly impacted by rising crude prices, owing to the commodities ability to stoke inflation, as petrol prices are aligned to market rates.
Pertinently, for India rising crude has been offset by a sharp acceleration in the Indian rupee against the dollar, since the beginning of the year. Also, since diesel is subsidised by the government it tends to contain runaway inflation.
Crude is likely to exhibit a firm trend at least in the short term. A spat between Israel and Iran following a bomb attack on an Israeli diplomat in Delhi is leading to further buying in the commodity. A continued escalation could fuel a further spike in crude.