Weekly Oil Report: Demand Surge Despite Rising Prices

On July 28, Brent oil closed at $84.40 and WTI settled around $80.63. Watch the technical analysis:

The bullish sentiment rocketed high due to the tight market and crude surpassed 84 for the first time since April.

In fact, oil can leave a strong monthly bullish candle in July.

As you can see on the 4-hour chart, the price pulled back to the mentioned resistance at 78 and jumped up. It is now getting closer to 86 resistance which rejected oil 5 times in the last 8 months.

Technically, current buying pressure and movement are much better than the last several times. However, no one can tell if it would pass through the resistance or not. It is better to be cautious and make decisions carefully.

There are some talks about the OPEC+ uncertain future and the possibility of a breakdown. However, it is not much likely for the cartel to separate at the moment. Saudi Arabia has been at a loss due to the cuts and big sales of Russia but any changes in the current uncertain market might make things worse.

Demand surge is another reason pushing the prices higher. The rainy season is ending and the rush of demand is surging from different parts of Asia and Africa. Traders expect this trend to continue.

Fuel surprised everyone with daily increases during the last week. Europe bitumen prices jumped up accordingly. India is possibly increasing bitumen prices by 20 – 25 dollars. Iran’s bitumen market is still hot and the price grew by another 30 dollars last week. Singapore also increased the price by 10 USD.

If you need bitumen, contact me for the exact price.