Oil extended the decline last week. Brent crude oil futures on the Intercontinental Exchange (ICE) ($83.60/barrel) and crude oil futures in the domestic market (₹7,424/barrel) lost 5 per cent and 8.5 per cent, respectively.Brent futures ($83.60)Brent crude futures began last week with a gap-down open. It slipped to mark a low of $78.11 on Wednesday before recovering to $83.60.Although the contract has been on a decline in the past two weeks, the outlook now appears unclear. A further decline from the current level can drag the contract back to $78. A breach of this can open the door for a decline to $71.On the other hand, if the contract recovers and rises above $86, it can strengthen to $91. Only a clear breakout of $91 will turn the trend positive again. MCX Crude Oil (₹7,424)Crude oil futures (Aug) opened with a gap-down last Monday. It then slipped below the support at ₹7,500 to a low of ₹7,078 on Wednesday.While there was a recovery towards the end of last week, the contract failed to reclaim ₹7,500-mark. Until this resistance is valid, the bias will remain bearish where the price can drop to ₹6,500.However, if the contract surpasses ₹7,500, it will face a resistance at ₹8,200. A clear breakout of this level can turn the near-term outlook positive and lift the contract to ₹10,000.But as it stands, there is some uncertainty about the path of the next move. Trade strategy: Traders can retain the short that we suggested last week once ₹7,500 is breached. Target and stop-loss can be ₹6,500 and ₹8,050, respectively.Published on August 8, 2026