Crude Oil Prices May Remain Range-Bound Amid Easing Geopolitical Risks
Crude oil prices are expected to remain range-bound with a bearish bias through August as easing geopolitical risks and improving supply conditions reduce the supply-risk premium, according to analysts. Ravinder Kumar, Senior Research Analyst at SMC Group, predicts that crude oil will hold within a trading range of Rs 7,290 to Rs 8,280 per barrel in the domestic market.
Dinesh Somani, Proprietor of ProIntelliTrade Services, notes that recent movements in crude oil futures have been driven more by headlines than by underlying market fundamentals. He attributes price action to geopolitical developments, social media posts, and breaking news, resulting in sharp gap-up and gap-down openings.
Somani also points out 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. However, he cautions that negotiations remain uncertain and volatility is likely to persist as fresh developments emerge.