Weekly Oil Report: Bullish Sentiment Wears Off

On Friday, Brent oil closed at $76.86 and WTI settled around $71.74. Watch crude technical analysis and comment your ideas:

In mid-December, Brent closed higher after 7 consecutive falling weeks. The movement is slow with no sign of trend change. A strong resistance is awaiting the price on 79 while the Christmas Holidays are a week ahead.

After Houthis attacks near oil chokepoints and US drilling cuts, supply concerns supported the price. But market is far more uncertain about the economy and demand in 2024.

After China reports about weaker demand and economic issues, India is now representing slower oil demand growth. Moreover, biofuel dominance is increasing in different markets.

The overall bullish sentiment is fading after one month of decline. Hedge funds, accordingly, have cut their long bets on crude oil.

Bitumen is under the dominance of crude fragile movements. Demand is not gone but traders are hesitant because of the uncertainty. India decreased bitumen prices by 16 dollars at the fourth consecutive attempt. Rates also fell in Europe and East Asia because of oil pressure. Despite all difficulties, market foresees better demand in 2024.

If you need bitumen, contact me for the exact price.

This article was prepared by Mahnaz Golmohammadian, the export manager of Infinity Galaxy (www.infinitygalaxy.org).