Brent crude consolidates after rally, faces $91 resistance

Oil prices rallied last week, with Brent crude futures on the Intercontinental Exchange closing at $88.50 per barrel, up 5.9%, and MCX crude oil futures at ₹7,810 per barrel, up 6.1%. However, Brent failed to sustain above $91, encountering strong resistance, and now looks set to consolidate in a tight range.

Thehindubusinessline.com reports that Brent crude has support at $86 and $83, with resistance at $91. The contract is likely to oscillate between $83 and $91 in the near term. A breakout above $91 could lift prices to $98, $100, while a fall below $83 may drag them to $78, $75. Similarly, MCX crude oil futures face resistance near ₹8,000 and support between ₹7,500 and ₹7,400. The contract is expected to trade sideways between ₹7,400 and ₹8,000.

Analysts advise staying out of trades as the market is expected to remain range-bound. The direction of the next trend will depend on which side of the consolidation band is breached.