Weekly Oil Report: Bullish Sentiment in Favour of Crude and Commodities

After 4 weeks, oil finally broke the rangebound. Brent closed the week at $85.26 and WTI settled around $80.97. Watch crude technical analysis and comment your ideas:

On Wednesday, bullish sentiment broke out in oil markets due to an increasingly stronger demand outlook. Brent has climbed above 85 USD for the first time since November 2023. The trend is now upward; however, it can have a pullback to the red zone.

IEA drew a stronger demand outlook in 2024. The institute expects demand to rise to 1.3 million b\d. Reports also believe that the OPEC cut can lead to a supply deficit throughout 2024.

OPEC and IEA demand outlook projects a 1% variation. OPEC believes that its cut will increase demand. It is the first time in 16 years that OPEC and IEA’s daily demand outlook has made such a difference. 

Gold and copper continue rallying high. Precious metals are benefiting from the dip in dollar index. With hints of cutting US interest rates, commodities can continue their rally. Investors are now expecting the cut to happen in June or July.

Global economic confusion is getting worse. While China has been announcing massive growth in different industries, real estate and properties are not doing well. In the US, situation is not better either. Fed reports show that it is probably decreasing interest rates despite inflation direction.

Bitumen is on an uncertain path as crude. India decreased the rate by 7 USD in mid-March. Iran kept prices steady since it’s getting closer to the New Year Holidays. Bahrain, as expected, didn’t change the price. Europe also has steady rates after an increasing period. Most regions are waiting to see where oil keeps going.

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