NewsMarketsMCX Crude Oil Futures Rise Amid Geopolitical Tensions, Form Bearish Triangle PatternMCX Crude Oil Futures Rise Amid Geopolitical Tensions, Form Bearish Triangle Pattern
MCX crude oil futures showed an upward trend, with October contracts at Rs 5,669.00 per barrel, up 0.66%. WTI crude gained 0.38% to $63.65, while Brent crude rose 0.40% to $67.90. The increase is attributed to geopolitical tensions, including Ukraine's drone strikes on Russian facilities and EU's planned sanctions on Russian oil trade. However, rising OPEC production, steady Russian exports, and weak US economic data pose challenges. Technical analysis reveals a bearish triangle pattern with support at Rs 5,429 - 5,579 and resistance at Rs 5,729.
*this image is generated using AI for illustrative purposes only.
Crude oil futures on the Multi Commodity Exchange (MCX) showed an upward trend on Wednesday, with October contracts trading at Rs 5,669.00 per barrel, marking a 0.66% increase. This movement aligns with the international oil market, where US West Texas Intermediate (WTI) crude gained 0.38% to reach $63.65, while Brent crude rose by 0.40% to $67.90.
Geopolitical Factors Support Oil Prices
The recent uptick in crude oil prices can be attributed to ongoing geopolitical tensions. Ukraine's drone strikes targeting Russian refineries and export facilities have added a risk premium to oil prices. Additionally, the European Union's preparation of new sanctions on Russian oil trade has further supported the bullish sentiment in the market.
Pressure Points on Crude Oil Prices
Despite the geopolitical support, crude oil faces several pressures that could potentially cap its gains:
- Rising OPEC Production: The Organization of the Petroleum Exporting Countries (OPEC) has increased its output to 35.90 million barrels per day (mbpd) in August.
- Steady Russian Exports: Despite ongoing tensions, Russian oil exports have remained steady.
- Weak US Economic Data: Recent economic indicators from the United States suggest a potentially weak demand outlook for crude oil.
Technical Analysis: MCX Crude Oil Forms Bearish Triangle Pattern
Technical analysis of MCX crude oil futures reveals the formation of a downward-sloping triangle pattern, indicating potential bearish sentiment in the near term. Key levels to watch include:
| Level | Price Range |
|---|---|
| Support | Rs 5,429 - 5,579 |
| Resistance | Rs 5,729 |
Traders and investors should note that a breakout above Rs 5,729 could signal a bullish reversal, while a breakdown below Rs 5,429 might renew the downtrend.
Market Outlook
The crude oil market currently finds itself at a crossroads, balancing geopolitical tensions against supply increases and demand concerns. While the MCX crude oil futures have shown a slight uptick, the overall technical pattern suggests caution. Market participants should closely monitor global events, OPEC+ decisions, and key price levels for potential trading opportunities in the coming sessions.
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