Crude Oil Price Tests $110 Per Barrel: FMCG, Airlines, Fuel, LPG, CNG, PNG, Which Sectors To Be Most Impacted?

The crude oil price is now testing the $110 per barrel mark on September 11, 2026, despite falling from the previous day. Brent crude touched as high as $107 per barrel, and US WTI crude oil breached over the $102 per barrel mark, keeping the energy crisis very much alive for the global economy to bear. A host of sectors will be impacted due to rising crude oil prices. These include credit-sensitive sectors, FMCG, and let's not forget oil and gas. Also, the probability of hikes in fuel, LPG, CNG, and PNG prices has heightened.

Crude Oil Prices

At the time of writing, US WTI crude oil futures plunged over 2.4% but held above the $100 per barrel mark, which is after it rose to over $102.5 per barrel. Meanwhile, Brent crude crashed nearly 3% to trade around $105 per barrel after surpassing the $107 per barrel mark. Investors await upcoming US CPI inflation data that is scheduled for later on Friday.

The CPI inflation data will provide further clarity on rate hikes amidst elevated crude oil prices. Both Brent and WTI are on the edge of weekly gains as geopolitical risks intensify in West Asia.

Top US officials reportedly warned President Donald Trump that the war could continue through the remainder of his term, which ends in January 2029. Meanwhile, Iranian leaders are reportedly determined to continue fighting despite mounting economic costs, viewing the conflict as an existential threat. They also claim that Tehran has managed to rebuild its missile capabilities and could intensify attacks on US and Gulf assets if Washington escalates its own strikes. Fighting has intensified over the past two weeks, with the US targeting Iranian oil tankers while Iran launched missiles at US warships and tankers in the Persian Gulf, as well as American assets in neighboring countries, as per Trading Economics.

On a month-on-month basis, US WTI has climbed over 20%, and Brent crude has surged nearly 18%. On a year-on-year basis, WTI skyrocketed by nearly 60%, and Brent soared over 56% thanks to the US-Iran conflict alone.

"With Brent holding above $100 a barrel, the highest since late July, the sectoral pinch is becoming clearer, and this is a supply-driven move rather than a demand story," said Rajeev Sharan, Head of Research, Brickwork Ratings.

Goldman Sachs has predicted that Brent could rise to $120 per barrel soon if the war extends for longer period. US and Iran's conflict has already been in its sixth month now.

Which Sectors To Take Hit Due To Rising Crude Oil Prices?

As per Brickwork's expert, the hit is largest in aviation, where jet fuel is roughly a third to 40% of operating costs at the recent price levels, followed by paints, tyres and petrochemicals, where crude-linked inputs form a large share of the raw material bill and margins compress quickly.

Further, logistics, cement and parts of FMCG feel it through freight and packaging, while oil marketing companies are squeezed when they cannot fully pass costs to the pump. Upstream producers, by contrast, gain from stronger realisations.

For an economy importing over 85% of its crude, Sharan said that estimates suggest every $10 a barrel adds about $13-14 billion to the yearly import bill and can lift retail inflation by 30 to 50 basis points.

Petroleum products like petrol, diesel, and LPG are directly linked to movement in international crude oil prices. Hence, it will be keenly watched if OMCs decide to hike their prices in October month or sooner.

From a credit view, he said, a brief spike is usually absorbed; the real risk is oil staying elevated from here, which would pressure margins in exposed sectors, with smaller, leveraged firms feeling it first.

Crude Oil Prices Outlook:

For MCX Crude Oil, Ponmudi R, CEO of Enrich Money said, crude continues to be driven by the widening conflict - Iran's strikes on 10 ships near the Strait of Hormuz and the Houthi seizure of Yemen's Mocha port have opened a second front of supply risk in the Red Sea. Bias stays strongly constructive above Rs 9,700, with a hold needed to extend gains toward Rs 10,200; a slip below Rs 9,600 would signal the first real sign of exhaustion.

For US WTI, its next resistance target is $109. Ponmudi added that WTI Crude is trading near $103, down 0.75% on the day as it consolidates just below its highs after a nearly 13% weekly surge - its biggest weekly gain since mid-July.

Giving further technical outlook, the analyst said, immediate resistance is at $104.00-105.00, and a break above targets next resistance at $109.00-110.00. Immediate support is at $100.00-99.00, with next support at $96.00-95.00. RSI at 75, firmly overbought, confirms the strength of this week's move, though the extended reading warns of a possible near-term pause or pullback. The rally is being driven by the confirmed Iranian attack on 10 vessels near the Strait of Hormuz and the new Red Sea flashpoint from the Houthi capture of Mocha port, both fueling fears of a prolonged disruption to global energy flows. Bias stays strongly constructive above $100.00, with a hold needed to resume the push above $105.00; a slip below $100.00 would signal a deeper near-term correction.

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