Crude oil prices surged last week. Brent crude oil futures on the Intercontinental Exchange (ICE) ($109.30/barrel) and crude oil futures in the domestic market (₹9,685/barrel) were up 7.9 per cent and 10.9 per cent, respectively.
Brent futures ($109.30)
Brent crude oil futures found support in early May and showed signs of bulls gaining traction. In line with this, the contract saw a considerable rise last week.
The price remains above both 21- and 50-day moving averages and the daily chart shows that Brent crude futures has formed a higher base last week at around $100 compared to the base at $94 made in April.
The price action maintains a positive inclination and the probability of further rally is high. We expect Brent crude futures to break out of $115 and soon touch $125. In case there is a decline, it will most likely be arrested at $94.
MCX-Crude oil (₹9,685)
Crude oil futures (June), in the first week of May, saw good buying interest on the back of the support at ₹8,400, which coincided with the 21-day moving average..
A rebound last week and the formation of a higher low adds strength to the bulls’ case. There is a good chance for crude oil futures to surpass the barrier at ₹9,800 and rally to ₹11,000.
If there is a decline from the current level, the contract can find support at ₹9,000. Below this, is the support band of ₹8,200-8,400.
Trade strategy: Buy crude oil futures if the price dips to ₹9,200 to achieve a better risk-reward ratio. Target and stop-loss can be ₹11,000 and ₹8,200.
Published on May 16, 2026