Oil snapped a three-week rally as the prices tumbled last week. Brent crude oil futures on the Intercontinental Exchange (ICE) ($87.90/barrel) and crude oil futures in the domestic market (₹8,113/barrel) lost 9.1 per cent and 5.7 per cent, respectively.Brent futures ($87.90)Brent crude futures opened last week with a huge gap-down and slipped further before finding some stability. Even so, it was not able to see a rally as bears remained in control.The price is above a key support at $84.75, where both 21- and 50-day moving averages coincide. On the back of this, we might see a recovery, potentially to $97 in the near term. A breakout of $97 can lift it to $100.However, if the price drops from the current level of $87.90 and slips below $84.75, it can drop to $75. MCX Crude Oil (₹8,113)Crude oil futures (Aug) began last Monday’s session with a gap-down. Following this, it hit a low of ₹7,464 on Tuesday, before seeing a recovery to ₹8,113.Despite the last week’s selling pressure, crude oil futures remains above the base at ₹8,000 and the support at ₹7,500. Hence, we might see a rally, possibly to ₹9,000.But if the contract declines and breaches the support at ₹7,500, the outlook can turn bearish. This can lead to a fall to ₹7,000 and subsequently to ₹6,500. Trade strategy: Overall, there is an uncertainty with respect to the upcoming trend. Hence, we suggest staying out.That said, traders with high risk tolerance can short crude oil futures if it breaks below ₹7,500. Target and stop-loss can be ₹6,500 and ₹8,050, respectively.Published on August 1, 2026