Crude oil prices seen range-bound with bearish bias in August: Analysts
Translated from English, summarized and contextualized by DistantNews.
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- Crude oil prices are expected to trade within a range with a bearish bias throughout August due to easing geopolitical risks and improved supply conditions.
- Analysts predict global prices to hover between $70-$90 per barrel, with domestic prices in a Rs 7,290 to Rs 8,280 range.
- Short-term movements will be influenced by developments concerning the Strait of Hormuz and US-Iran diplomatic negotiations, though market fundamentals are currently secondary to sentiment-driven volatility.
Crude oil prices are anticipated to remain range-bound with a bearish tendency through August, according to analysts. This outlook is attributed to a reduction in geopolitical risk premiums and improving global supply conditions.
Crude oil is displaying a sideways-to-bearish trend, though prices are expected to hold within a broader trading range of Rs 7,290 to Rs 8,280 per barrel in the domestic market.
Analysts project that international crude oil prices will likely fluctuate between $70 and $90 per barrel over the next month. In the domestic market, prices are expected to stay within a broader trading range of approximately 7,290 to 8,280 rupees per barrel.
global crude oil prices are expected to hover in the USD 70-90 per barrel range over the next month.
Recent price movements have been significantly influenced by headlines and geopolitical developments rather than underlying market fundamentals. Statements from U.S. President Donald Trump regarding progress towards reopening the Strait of Hormuz and a potential easing of tensions with Iran have reduced immediate supply-risk premiums, leading to price declines as markets factor in a lower probability of disruptions.
recent movements in crude oil futures have been driven more by headlines than by underlying market fundamentals.
However, analysts caution that negotiations remain uncertain, and volatility is likely to persist as new developments emerge. Technical analysis suggests immediate support for WTI crude oil around $76 per barrel, with a potential trading range of $73-$88. On the MCX, key support is seen between 7,200-8,500 rupees per barrel. Traders are advised to exercise caution and maintain strict risk management due to sentiment-driven volatility.
US President Donald Trump's statement indicating progress towards reopening the Strait of Hormuz and signalling a possible easing of geopolitical tensions has reduced the immediate supply-risk premium in crude oil prices.
DistantNews Editorial
Originally published by Times of Oman in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.
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