Oil Prices Continue Decline Amid Uncertainty
The price of crude oil continued to decline last week, with Brent crude futures on the Intercontinental Exchange (ICE) falling by 5% and domestic market prices dropping 8.5%. The Brent contract began the week with a gap-down open, hitting a low of $78.11 before recovering to $83.60.
Despite the recent decline over two weeks, the outlook remains unclear. A further drop could send the price back down to $78, while breaking below this level may lead to a decline to $71. On the other hand, if the contract recovers and surpasses $86, it could strengthen to $91.
The MCX Crude Oil futures also experienced a gap-down opening last Monday, slipping below the support at ₹7,500 to a low of ₹7,078 on Wednesday. A recovery towards the end of the week failed to reclaim the ₹7,500-mark, keeping the bias bearish and potentially leading to a drop to ₹6,500.