Weekly Oil Report: Concerns Pile Up About China’s Demand

Oil dropped by about 3% due to fears about China’s demand. Watch crude oil technical analysis:

On Friday, Brent closed at $82.60 and WTI closed at $78.58. Although price fluctuates in the same range as the last 6 months, it recorded a long falling candle on Friday. The head and shoulder pattern is not broken but traders are careful around the area to see the direction. On Monday, prices will slightly rise due to the recent Middle East tensions. 

Israel launched a strike on Houthis in Yemen on July 20 for the first time since Israel-Hamas war. The action follows Houthis attack on Tel Aviv airspace. These fights can make the region suddenly intense if they continue. 

China’s Central Committee failed to provide any solid details on economic stimulus measures. The lack of tangible data about the future demand of China is causing a lot of concerns in commodities.

Although oil had a correction, bitumen markets still have rising pressure. Iran also faced another increase due to the decreasing exchange rate of dollar against Rial.

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).