Oil prices faced another challenging week, with both Brent and MCX-Crude oil futures ending in the red despite a mid-week recovery. Brent crude futures on the Intercontinental Exchange (ICE) settled at $95.80 per barrel, down 2.5% for the week, while MCX-Crude oil (Dec) futures closed at ₹8,282 per barrel, losing 1.4%.
The decline in Brent futures was marked by a low of $89.16 early in the week, but the contract rebounded to close at $95.80. However, the outlook remains bearish as the contract faces significant resistance levels ahead. The nearest resistance is at $98, followed by $101.50 and $105. A decisive breakout above $105 is needed to shift the outlook to bullish.
MCX-Crude oil (Dec) futures also saw a recovery after hitting a low of ₹7,807, reclaiming the ₹8,000 mark. However, the outlook remains bearish with key resistance levels at ₹8,500 and ₹9,000. A break above ₹9,000 could turn the tide, but until then, the bears are likely to retain control.
Analysts expect the decline to resume, with Brent futures potentially breaching the $90 support and extending the fall to $86. Similarly, MCX-Crude oil futures could drop to ₹7,400 or even ₹7,000. Only a strong break above the resistance levels could alter this bearish trajectory.