Crude Oil Prices Expected to Remain Range-Bound in August

Crude oil prices are expected to remain in a narrow range for August due to easing geopolitical risks and improving supply conditions, according to analysts. The prices of crude oil have been influenced primarily by headlines and breaking news rather than underlying market fundamentals.

Ravinder Kumar, Senior Research Analyst at SMC Group, said that crude oil is displaying a sideways-to-bearish trend, with prices expected to hold within the range of USD 70-90 per barrel. He added that the domestic market is expected to trade between Rs 7,290 and Rs 8,280 per barrel.

Market experts also noted that recent movements in crude oil futures have been driven by geopolitical developments, social media posts, and breaking news, resulting in sharp gap-up and gap-down openings. Dinesh Somani, Proprietor of ProIntelliTrade Services, said that US President Donald Trump's statement indicating progress towards reopening the Strait of Hormuz has reduced the immediate supply-risk premium in crude oil prices.

Kaynat Chainwala, Vice President-Commodity Research at Kotak Securities, expects WTI crude to find support at USD 77.5 and USD 75, with resistance at USD 87 and USD 93.5. She also sees support for MCX crude oil at Rs 7,450 and Rs 7,150 per barrel, while resistance is placed at Rs 8,300 and Rs 9,000.