Oil prices saw a considerable drop over the last week. Brent crude oil futures on the Intercontinental Exchange (ICE) ($88.10/barrel) and crude oil futures in the domestic market (₹7,984/barrel) fell 6.7 per cent and 4.5 per cent, respectively.

Brent crude futures dropped during the first half of last week. But the contract bounced off $85 and rose in the second half, cutting the losses for the week.

That said, the chart shows a lack of clarity in trend. Given the prevailing price action, the Brent crude futures is likely to stay within $84 and $93. Only a clear breach of this price region will give us clarity about the next leg of trend. 

A breakout of $93 can trigger a rally to $100. But if the contract breaches the support at $84, it can decline to $78.

Crude oil futures (Sep) fell last week and made an intra-week low of ₹7,602 before recovering to end the week at ₹7,984. Although there was a recovery in the latter half of last week, the bulls lacked conviction and could not build a rally. 

The chart shows that the contract has support levels at ₹7,600 and ₹7,480. Until these levels hold true, the likelihood of a fall is low. However, there are also barriers ahead at ₹8,400 and ₹8,600.

So long as ₹8,600 and ₹7,480 remain true, the path of the next trend will remain uncertain. A breakout of ₹8,600 can lead to a rally to ₹10,000. On the other hand, if crude oil futures breach the support at ₹7,480, the outlook can turn weak where the price can decline to ₹7,000. 

Trade strategy: Stay out.

Published on August 29, 2026