Oil Volatility and Rupee Strength Dominate Commodity Markets
Crude oil prices remain volatile due to Strait of Hormuz developments. 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. The energy market experienced sharp swings as investors responded 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.
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.