Crude oil prices saw a drop over the past week. Brent crude oil futures on the Intercontinental Exchange (ICE) ($60.50/barrel) was down 1.1 per cent whereas crude oil futures in the domestic market (₹5,105/barrel) declined 2.5 per cent.
Brent futures ($60.50)
Brent crude oil futures fell in the first half of last week but recouped some of its losses in the latter half. But this has not removed the bearishness. The chart shows that the bears still have momentum and the likelihood for a decline is high.
From the current level, the contract can decline to $58.50, a support. But if the contract recovers, until the barrier at $64 is breached, the rally will not be sustainable. In case this level is breached, Brent crude futures can rise to $70.
MCX-Crude oil (₹5,105)
Crude oil futures (January) depreciated last Monday and Tuesday. During the following sessions, it was largely consolidating in the region between ₹5,030 and ₹5,140.
Crude oil futures has some weakness. While there might be some more upside from the current level, it is likely to be capped at ₹5,200. Only a decisive breakout of ₹5,470 can turn the outlook bullish.
Until then, any uptick will invite fresh sellers, weighing on the contract.
That said, there is a support at ₹5,000 coming up, which can add some strength to the bulls. But not until this level is tested by the January contract.
Overall, as it stands, the direction of the next leg of trend depends on which of ₹5,470 and ₹5,000 is breached first. While the nearest support below ₹5,000 is at ₹4,800, immediate resistance above ₹5,470 is at ₹5,750.
Trade strategy: Refrain from trading.
Published on December 20, 2025