New Delhi, August 8, 2026 (Yes Punjab News)
Crude oil prices are likely to remain volatile next week as markets closely track developments surrounding the Strait of Hormuz, while the Indian rupee could strengthen further against the US dollar if geopolitical tensions remain contained, analysts said.
Brent crude futures gained 1.29 per cent on Friday to settle at $83.55 a barrel, though the benchmark remained below the previous week’s close of $90.12. US West Texas Intermediate (WTI) crude for September delivery ended at $78.18 a barrel, compared with $84.67 at the end of the previous week.
Oil prices witnessed sharp fluctuations during the week as traders assessed the possibility of an agreement that could facilitate the reopening of shipping through the Strait of Hormuz, a crucial global oil transit route.
WTI prices fell sharply early in the week after US President Donald Trump paused a planned strike on Iran and opted to pursue a diplomatic agreement. Prices later recovered as markets assessed reports of progress towards a temporary arrangement for shipping through the strait.
Analysts said a confirmed agreement allowing shipping to resume normally could exert further downward pressure on crude prices. Any renewed escalation, however, could quickly bring back the geopolitical risk premium in oil prices.
On the domestic market, MCX crude oil declined to around Rs 7,100 before recovering to close near Rs 7,400.
Commodity analysts see Rs 7,500-7,550 as the immediate resistance zone for MCX crude, while Rs 7,380-7,300 is expected to provide near-term support. A break below this support could drag prices towards Rs 7,250, with stronger support seen around Rs 7,100-7,000.
Meanwhile, the Indian rupee strengthened during the week, with USD/INR settling around Rs 95.2 after touching an intraday low of nearly Rs 94.9.
Analysts said the rupee continues to find technical support as USD/INR trades below its long-term ascending trendline. A sustained move below Rs 94.9 could strengthen the rupee towards Rs 94.7-94.5.
On the other hand, Rs 95.2-95.4 is expected to act as an immediate resistance zone for USD/INR. A move above this range could take the pair towards Rs 95.5-95.7, signalling renewed weakness in the rupee.
Technical indicators are also favouring the domestic currency, with the Relative Strength Index (RSI) easing from overbought levels and the Moving Average Convergence Divergence (MACD) pointing to weakening bullish momentum in USD/INR.
However, analysts cautioned that the outlook will continue to depend on the movement of the US dollar, crude oil prices, foreign portfolio flows and geopolitical developments.
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