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Crude Oil Prices Surge: What's Next?
26 Apr
Summary
- Brent crude futures rose 9.7 percent last week.
- Domestic crude oil futures jumped 15 percent.
- Current price bands suggest potential for significant movement.
Following two weeks of decline, crude oil prices saw a notable increase over the last week. Brent crude oil futures on the Intercontinental Exchange rose by 9.7 percent, reaching $99.13 per barrel. Similarly, crude oil futures in the domestic market saw a substantial 15 percent jump, trading at ₹8,817 per barrel.
Analysis of Brent futures shows a price action that has largely remained within the $92 to $115 band since mid-March, despite volatility. A breach of the $115 resistance could propel prices to $130, while a drop below the $92 support might lead to a decline towards $80.
In the domestic market, MCX-Crude oil futures have also traded within a broad range of ₹7,800 to ₹9,500 since mid-March. The 50-day moving average at ₹7,800 serves as a key support. A rally beyond the ₹9,500 resistance could target ₹10,500 or ₹11,000, whereas a fall below ₹7,800 might weaken the near-term outlook, potentially reaching ₹7,000 or even ₹6,200.
Overall, the trend for crude oil remains unclear for the current week, leading to a recommendation for traders to avoid initiating new trades.
