Oil's Potential Upsurge: Prospects Remain for Oil Futures
Published on August 30, 2025
Brent crude oil futures on the Intercontinental Exchange (ICE) are currently trading at $67.50 per barrel, maintaining a largely sideways trend within the range of $66.50 and $68.30. Meanwhile, the Multi Commodity Exchange of India Ltd (MCX), a commodity derivatives exchange in India where crude oil futures are traded, has shown a positive trend, with MCX crude oil futures gaining 1.5 per cent compared to the previous trading.
MCX crude oil futures are currently trading at ₹5,654 per barrel. Last week, a trade strategy was recommended to buy crude oil futures (September) at ₹5,570, with a stop-loss at ₹5,370. However, there was no follow-through upswing, and the contract moved sideways within the ₹5,560-5,700 price band.
The price of crude oil futures (September) remains above the 21- and 50-day moving averages, indicating a positive short-term outlook. If Brent crude oil futures slip below the support at $65, it can decline to $62, another support level. On the other hand, if it surpasses $70.70, it can extend the rise to $75.
Support for crude oil futures (September) below ₹5,400 is at ₹5,000. When the contract touches ₹5,800, the stop-loss should be revised to ₹5,600. Profits should be booked at ₹6,000. If crude oil futures (September) drops below ₹5,560, it may find support at ₹5,400.
The relative performance of MCX crude oil futures compared to Brent crude oil futures indicates a stronger demand for crude oil in the Indian market. As long as the Brent crude oil futures contract remains above the base of $65-65.50, the bias will be positive.
Resistance for crude oil futures (September) above ₹6,100 is at ₹6,300. There is a potential for crude oil futures (September) to rise this week, possibly above ₹5,700 and towards ₹6,100. There is also a possibility for Brent crude oil futures to rally to $70.70 in the near term.
However, a breach of the ₹5,400 support level can turn the short-term outlook bearish. It is important for investors to closely monitor the market trends and adjust their strategies accordingly.
