Weekly Oil Report: Economic Turmoil and Political Tensions Evoke Crude

Crude, stalled in the range of 92 to 94 during the last week of October, shows that the market is still confused. Bitumen and fuel, however, tend to be rising.

Brent closed at $94.14 and WTI settled at $88.28 on Friday, 28 October.

On the weekly chart, it seems that the lower low in September is a valid pivot point and the price is making higher lows since then. The market is obviously cautious and indecisive.

After four consecutive falling months, October looks to bring growth.

The Chancellor of Germany recently quoted that the economic condition is very similar to the post-WWII years.

Surely, not just Europe but the globe’s economic outlook, is trembling. None of the financial organizations is hopeful about the coming years.

The energy crisis in Europe is still dominating but the governments have succeeded to fill all the inventories to pass the winter.

Natural gas prices even got to zero in Europe for a while last week, despite halted Nord Streams and Russia’s sanctions. The sudden fall in the price does not mean cheap energy or the end of the energy crisis for the region.

The sparks in the Middle East look to be turning into a real fire. The turmoil can harshly affect markets.

Singapore Fuel price increased by 30 $ on the 28 and 27 of October. The slight increase in oil and the sudden rise of fuel is a very strong incentive for bitumen prices.

Rumours about the changes in Iran’s export regulations also boosted the prices. If the government exerts the new proposed regulatory, prices can have a 10% growth in the country.

Currently, Iran’s new steel drum is in the range of $ 420 – $ 430. Singapore bulk was $ 560, South Korea 60/80 was $ 485 and Bahrain was $ 425 on Friday, 28 October.