Oil Prices Rally, But Resistance Limits Gains

Oil prices surged last week, with Brent crude futures on the Intercontinental Exchange (ICE) and domestic crude oil futures seeing significant gains. The Brent crude futures price rose to $88.50 per barrel, a 5.9% increase, while domestic crude oil futures reached ₹7,810 per barrel, up 6.1%. This rally was short-lived, however, as the prices faced resistance at $91 for Brent and ₹8,000 for domestic crude.

The resistance at $91 is likely to block further gains in the near term, with support at $86 providing a potential floor. A breakout above $91 could push Brent crude futures up to $98 or $100, while a breach below $83 could lead to prices falling to $78 or $75.

Similarly, domestic crude oil futures have resistance at ₹8,000 and support between ₹7,500 and ₹7,400. While a breakout above ₹8,000 is considered low this week, if the price does break through, it could lead to a rally up to ₹8,600.