Weekly Oil Report: Re-Heated Geopolitical Tensions Slightly Supported the Market

On Friday, Brent oil closed at $78.81 and WTI settled around $73.89. Watch crude technical analysis and comment your ideas:

Crude oil is set to close out with a small gain in the first week of 2024. None of the major supports or resistances got violated yet and there is no significant change in purchasing power. The sentiment is almost bullish for the week ahead.

Restrictions of supply surely boosted the bullishness. The US drilling activity slowed down and Libya’s largest oil field shut down due to several protests. OPEC+ will hold its first meeting on February 1 to discuss the voluntary cuts.

Meanwhile, the risk of pirates added up to the concerns about the Red Sea. Large shipping lines are still hesitant about the outlook of the region due to the spread of conflicts. Freights almost doubled for several destinations.

Since oil movements were minor and many countries were in the middle of the New Year holidays, bitumen didn’t have any significant fluctuations. The biggest change in the Middle East happened in Iran as the vacuum bottom increased by $ 16. Some are taking the growth as an indication of new improvements.

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).