Weekly Oil Report: Slower Demand Confused Traders

On Friday, Brent closed at $84.95 and WTI closed at $82.14. Despite a 2% fall, it stayed above 82 which is a strong psychological level. Watch crude oil technical analysis:

Purchasing power has decreased but the general market sentiment is not turned down. Demand and expected Fed cut in September were the strongest factors. 

The International Energy Agency (IEA) reported that China’s consumption growth is slowing down. China’s crude oil import decreased by 11% in June compared to last year. Since Hurricane Beryl was less destructive than expected, the market has been more cautious about the weaker demand. 

US economic reports in June raised the possibility of seeing an interest cut in September. Traders hope for a 25 basis points cut after Powel’s Speech on Tuesday.

Disputes between Israel and Hezbollah didn’t have any significant changes but it kept the region tense. Hamas and Israel have not reached any truce and it’s unlikely for Israel to start a new war. 

NATO and BRICS happened simultaneously while both were trying to get to an agreement with their allies. While Putin appeared well-prepared for his speech with a clear agenda, Biden made a series of verbal gaffes. More people are now questioning the competency of the US president. 

Attempted assassination of Donald Trump in Pennsylvania makes the election harder for Biden and Democrats. With the negative comments on Biden’s health and the rising tension for the election, Republicans’ chance to win the election is constantly increasing.

Bitumen markets were indecisive due to oil and freight changes. Singapore and Korea were almost steady. Bahrain had no changes. India is likely to have an increase. Iran will also raise the VB by $8 in the next 4 days. Sea freight is expected to increase again. All these rising side costs are forcing suppliers to increase bitumen rates as well.  

Feel free to contact me for bitumen inquiries or more information.

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