Oil rallies as Middle East risks widen supply concerns
Crude rallied as Middle East conflicts, attacks on Strait of Hormuz shipping and a high inventory draw supported prices. WTI traded between $96.25 and $110.50, while Indian energy stocks showed mixed derivatives positioning.
pre-market1 source ↓machine-written, see hownot a recommendation
- ONGC close
- ₹225.62
- On the day
- +0.28%
- Futures OI, long build-up
- +0.1%
- Put-call ratio
- 0.46
- Max pain
- ₹225.00
Oil prices extended their November rally as fighting continued across the Middle East, attacks on shipping persisted in the Strait of Hormuz and an unexpectedly large inventory draw added to the bullish momentum. The report said WTI December futures traded between $96.25 and $110.50 a barrel, while Brent ranged from $105.95 to $116.35. Both benchmarks settled higher over the week, and the WTI–Brent spread widened to $14.00. ⚡
The supply-risk premium is increasing because Iran has continued targeting crude tankers and other cargo vessels despite a halt in US attacks. Iran also threatened greater aggression if the US and Israel resume strikes. The United States has increased its regional presence, including a third aircraft carrier, keeping the risk of further disruption elevated. For the energy sector, any interruption to traffic through the Strait of Hormuz could tighten prompt crude availability and widen regional price differences. The inventory draw provides an additional demand-side signal, although the article did not quantify the reduction.
Indian oil-linked equities reflected a more measured response in OI Charts data as of 21 Oct 2026. ONGC closed at ₹225.62, up 0.3% on the day, with volume of 84 lakh shares. Its futures showed a small long build-up, with open interest up 0.1%; the futures price traded at a 0.17% discount to spot. The ₹225 call had the largest call open interest and ₹220 the largest put open interest, while max pain stood at ₹225 for the 27 Oct expiry. The stock remained 4.2% lower over 20 sessions and sat close to its 52-week low of ₹218.53 recorded on 8 Oct.
Reliance closed at ₹1,209, up 0.6%, with volume of 1.76 crore shares. OI Charts data showed short covering as futures open interest fell 2.7%. The ₹1,250 call and ₹1,160 put held the largest open interest, with max pain at ₹1,210 for the same expiry. Its 20-session return was still negative at 3.1%, despite a 3.6% gain over five sessions. Traders will watch further vessel incidents, official military decisions, inventory data and whether crude remains above the reported weekly ranges. 🛢️
Source: Oil & Gas Journal, 23 Oct 2026
Not investment advice. For informational purposes only.