Weekly Oil Report: Clouds of Doubts Hovering Over

Crude market participants passed a flickering week ended in following the descending trend of Brent and WTI. The global covid condition and demand outlook is now dim for traders. Weekly charts of crude state a powerful uncertainty within the market during the second week of August. On Friday, Brent closed at $69.79 and WTI had $67.93 at the end of the trading sessions. The market also opened at lower prices on August 16, and more decrease still looks probable. We shall wait to see how the market reacts to the current conditions during the week. Tensions in the Middle East have not been dealt with yet. Countries are struggling with potential wars or a change of government. Covid is getting more victims every day. The spread of the virus has shocked some of the traders as they believed that the outbreak is getting over. The vaccination is proceeding; however, some countries have faced several issues in the procedure, including not having enough vaccine doses. People do not know how the world will get through; therefore, they are uncertain about the demand outlook. Considering the US and Europe reports, the economies are still reviving as the governments wished. The central banks still believe in keeping the interest rate low. However, they are also worried about the eruption of covid in some regions. If the virus keeps spreading, they might implement travelling restrictions. Petrochemicals took the advantage of the wavering oil and increased. Despite oil, the demand for bitumen and other petrochemicals are still stable in the market. Traders prefer to buy their cargoes before any specific change in the market.