Crude oil futures brace for volatility amid geopolitical uncertainties

Crude oil futures are likely to remain volatile next week as uncertainty over US-Iran negotiations and escalating tensions in West Asia keep supply risks elevated, even as hopes of a deal to reopen the Strait of Hormuz offer scope for a correction, analysts said.

Investors will track the monthly oil market reports from the Organization of the Petroleum Exporting Countries and the International Energy Agency, along with the American Petroleum Institute's weekly inventory numbers and US government data on crude inventories and imports, they added.

The geopolitical situation remains fluid after US President Donald Trump said Washington was considering joining Saudi strikes against Iran-backed Houthi rebels in neighbouring Yemen, following an attack on Riyadh's international airport.

"The widening conflict has heightened concerns over energy shipments through the region, including the strategic Bab el-Mandeb Strait," said Navneet Damani, Head of Research - Commodities at Motilal Oswal .