Crude oil prices dipped globally after the Organization of the Petroleum Exporting Countries (OPEC) and its allies decided to raise August output by 548,000 barrels per day (bpd) — a hike larger than market expectations. The decision triggered a sharp pullback in prices, with domestic and international benchmarks reflecting bearish sentiment.
Global Price Movement:
In India, MCX crude oil prices opened 1.93% lower at ₹5,580, compared to the previous close of ₹5,690. By 9:55 AM, crude was trading at ₹5,666, reflecting a 0.42% intraday decline.
The OPEC+ output hike surpasses the previous monthly increases of:
This fresh increase comes amid lingering uncertainty around US tariff policies, which have raised concerns over global demand recovery and economic growth.
Technical Outlook – MCX Crude:
MCX crude has been in a corrective phase since peaking at ₹6,600 in mid-June. According to Tejas Shigrekar, Chief Technical Research Analyst – Commodities & Currencies at Angel One Ltd.:
“After a steep decline from ₹6,600 to ₹5,600, prices entered a sideways consolidation, forming a bearish rectangle or flag pattern. Currently, crude is consolidating near ₹5,690 — a former support that has turned into resistance.”
Key Levels to Watch:
Market Sentiment:
Oil prices remain under pressure as traders weigh the potential oversupply from OPEC+ against softening demand outlooks, particularly in the US and China. With the absence of clarity on US trade policy, investor caution is expected to persist in the near term.
Investors are advised to monitor geopolitical developments, US tariff announcements, and inventory data closely for near-term direction.
