Crude oil prices skyrocketed last week. Brent crude oil futures on the Intercontinental Exchange (ICE) ($92.70/barrel) surged 27.2 per cent. The price of this contract has stayed above $90 for the first time since April 2024. Notably, it hit an intra-week high of $94.64 on Friday.

Crude oil futures in the domestic market (₹8,363/barrel) rose 37.3 per cent. The contract’s peak last week was ₹8,518, the highest price since August 2022. Year-to-date, crude oil futures price in MCX is up by a staggering 60.4 per cent.

The conflict in the Middle East and the consequent closure of the Strait of Hormuz, through which about 20 per cent of the global oil flows, triggered the rally. Now that Iraq and Kuwait have started to curb oil output, the upside looks to have more fuel left.

Nevertheless, the prices can remain volatile as the energy commodity is likely to react to every news regarding the conflict. So, traders should stay very cautious.

MCX-Crude oil (₹8,363)

Crude oil futures (March) moved past the barriers at ₹7,000 and ₹8,000 last week with ease. The rally appears very strong and there are no signs yet of cooling. However, there is a chance for a corrective decline, possibly to ₹8,000 or ₹7,500.

Post this dip, the contract might resume the upswing to hit ₹10,000, a psychological level. On the back of this, there might be a decline. But how the contract will react to ₹10,000 is uncertain now.

Trade strategy: Buy crude oil futures if the price dips to ₹7,700. Target and stop-loss can be ₹9,500 and ₹7,000 respectively. Risk-averse traders can avoid this trade.

Published on March 7, 2026