Weekly Oil Report: Sudden Rush of Fear in Oil Markets

Crude oil shocked the market with the third falling week and getting below 80 dollars. Affected by oil, petroleum products had hectic days.

On May 5, Brent oil closed around $75.27 and WTI settled above $71.29.

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Although Brent fell to 71.40 on Friday, it didn’t make any new low. It can’t be taken as the end of the falling trend, yet traders should be cautious for a while. We can expect a bit of rising in crude since it is oversold at the moment.

The big weekly loss was a result of the anxiety injected by recession fears and China’s declined manufacturing that rattled demand optimism. According to Reuters reports, Russia is also increasing its production despite all the claims to restrict it.

Commodity strategists, however, believe that the world will face a supply deficit in the second half of 2023. Therefore, they guess the negative sentiment is only short-term trouble. They also see petroleum products thriving for the two last quarters.

Bitumen and fuel also declined following curd. Iran’s bitumen fell by 5.8 %. Prices, in East Asia, stayed unchanged.

Below, you can check several bitumen prices in different regions.