Weekly Oil Report: Crude Prices Increased with Demand Optimism and Rising Tensions

Oil futures stayed the same on Friday, June 21. Signs of rising demand and falling US oil inventories pushed the market for constant growth in the week. After a 0.8 % growth, Brent Futures closed at 85.56$ and WTI closed at 82.12$ for August delivery. Interestingly, prices have increased for the coming month by about 5% in the last 7 weeks. Watch crude oil technical analysis:

EIA reported that US oil inventories had a decline of 2.5 m barrels while the expected was only 2.2m. The decline shows the increasing demand in the market. 

Demand outlook is also growing in Asia. According to reports, some factories are re-starting their production plants which were shut down temporarily.

Geopolitical tension in the Middle East is constantly growing. After a speech by Hassan Nasrallah, the conflict between Hezbollah and Israel flared up. The stress can lead to higher prices of oil. 

Bitumen market also has a mixed sentiment. Bahrain has decreased the price by 30$. Iran shows signs of a coming increase. East Asia is almost stable but it has the potential to grow.

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).