Oil snapped a three-week rally as the prices tumbled last week. Brent crude oil futures on the Intercontinental Exchange (ICE) ($87.90/barrel) and crude oil futures in the domestic market (₹8,113/barrel) lost 9.1 per cent and 5.7 per cent, respectively.

Brent crude futures opened last week with a huge gap-down and slipped further before finding some stability. Even so, it was not able to see a rally as bears remained in control.

The price is above a key support at $84.75, where both 21- and 50-day moving averages coincide. On the back of this, we might see a recovery, potentially to $97 in the near term. A breakout of $97 can lift it to $100.

However, if the price drops from the current level of $87.90 and slips below $84.75, it can drop to $75. 

Crude oil futures (Aug) began last Monday’s session with a gap-down. Following this, it hit a low of ₹7,464 on Tuesday, before seeing a recovery to ₹8,113.

Despite the last week’s selling pressure, crude oil futures remains above the base at ₹8,000 and the support at ₹7,500. Hence, we might see a rally, possibly to ₹9,000.

But if the contract declines and breaches the support at ₹7,500, the outlook can turn bearish. This can lead to a fall to ₹7,000 and subsequently to ₹6,500. 

Trade strategy: Overall, there is an uncertainty with respect to the upcoming trend. Hence, we suggest staying out.

That said, traders with high risk tolerance can short crude oil futures if it breaks below ₹7,500. Target and stop-loss can be ₹6,500 and ₹8,050, respectively.

Published on August 1, 2026