Crude Volatility Meets Rupee Strength as Markets Track Hormuz Developments
New Delhi, India - Crude oil prices remain volatile as markets track developments around the Strait of Hormuz. Brent crude futures rose 1.29% to $83.55 a barrel on Friday but remained below last week's close of $90.12.
US West Texas Intermediate (WTI) crude for September delivery settled at $78.18 a barrel, down from $84.67 at the end of the previous week. Sharp swings in the energy market occurred due to changing expectations over a possible agreement to reopen shipping through the Strait of Hormuz.
A confirmed agreement could put further downward pressure on crude prices, while renewed tensions would quickly restore a geopolitical risk premium. On the domestic market, MCX crude oil fell to around Rs 7,100 before recovering to close near Rs 7,400.
The commodity experts see immediate resistance at Rs 7,500-7,550, with Rs 7,380-7,300 providing near-term support. A break below the support zone could push MCX crude towards Rs 7,250, with a stronger base seen around Rs 7,100-7,000.
The Indian rupee strengthened during the week, with the USD/INR pair settling around Rs 95.2 after touching a low of about Rs 94.9. The rupee remains technically supported as USD/INR trades below its long-term ascending trendline.