Weekly Oil Report: Bad News for Crude Markets

On Friday, Brent closed at $79.61 and WTI closed at $76.41. Watch crude oil technical analysis:

The head and shoulder pattern, shown last week, was fully completed throughout the week. Oil dropped sharply on Friday and it caused July to be a bad month for crude up to now. However, the price has not violated the support at $76 so we can’t expect a trend change yet. 

Selling pressure increased after Biden supported Kamala Harris as the Democratic candidate in the US election. Harris is gathering funds quickly, making her a new opponent for Trump. Harris presidency will be bad news for oil since she supports climate projects. 

China’s economy is not growing as fast as expected. Demand is moving slowly despite millions of support for real states and industries. 

The US falling oil inventory was the only good news for oil this week which was lost among other news. According to the Energy Information Administration (EIA), crude inventories fell by 3.7 million barrels. This data shows strong U.S. oil demand.

Bitumen moved in opposite of crude oil in most regions. Singapore increased by $6 on Friday. Europe also had some growth. Bahrain stayed unchanged. Meanwhile, reports show that India will soon raise prices. Iran’s market also continues the rising trend. 

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).