Crude Check: Recovery faces hurdles
Bears retain the upper hand
Oil prices continued their downward trend last week, with both Brent crude oil futures and MCX-Crude oil futures experiencing weekly losses. While Brent futures on the Intercontinental Exchange fell by 2.5%, domestic crude oil futures slipped 1.4%. Despite the temporary recovery from last week's lows, the overall sentiment remains bearish as both contracts face significant resistance levels ahead.
Brent crude futures dipped to $89.16 at the start of the week before recovering to $95.80. However, this support around $90 may not hold, as the contract has to overcome a series of resistance levels. The nearest resistance is at $98, followed by $101.50. A decisive break above $105 could potentially turn the outlook bullish, with further resistance at $110 and $115.
Should the contract resume its decline, Brent crude futures may breach the $90 support and push lower to $86. For MCX-Crude oil futures, resistance at ₹8,500 prevented a further drop, with the contract lowing to ₹7,807. However, the outlook remains bearish, as key resistance levels at ₹8,500 and ₹9,000 could cap the recovery. A decisive break above ₹9,000 could lead to a rally towards ₹10,000.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
