Weekly Oil Report: Economy and Geopolitical Tensions Dominating

Oil markets are under mixed sentiment due to:

• US Inflation Outlook
• China’s New Report
• US Pushing Gaza Truce

Mixed sentiment in the market is leading to quick shifts in prices with every piece of news. Therefore, the sharp dip was covered by a sharp rise during this week due to demand outlook reports and US inflation data. On Friday, Brent closed at $82.56 and WTI settled around $78.44. If the double top pattern in 4h completes, we can expect Brent to get on 80.

Economic condition is also under a mixed sentiment. Although US inflation cooled down slightly in May, the Federal Reserve held interest rates at a two-decade high on Wednesday. Powel believes that they want to gain further confidence. As the interest rate is unchanged, the market expects commodities to increase.

According to new China reports, consumption is on rise due to the hot season but it still has to get stronger. The producer price index is also rising but it is mostly because of commodities increase. “I think the deflationary pressure has not faded yet,” said a chief economist at Pinpoint Asset Management.

On June 13, Houthis attacked another commercial ship in the Red Sea. It shows that the tensions in the region continue. Accordingly, US Secretary of State, Antony Blinken, visited Cairo and Jerusalem to push the latest proposal for a ceasefire in Israel’s war in Gaza.

Bitumen market had a mixed sentiment similar to crude oil too. Iran’s market procedure has changed recently and pressure is increasing on export sector. Iran is probably increasing the price in near future. Bahrain is still stable. Singapore and Korea had a slight increase after having a dip due to crude oil movements.

Feel free to contact me for bitumen inquiries or more information.

Latest Bitumen Price – 17 June 2024

This article was prepared by Mahnaz Golmohammadian, the export manager of Infinity Galaxy (www.infinitygalaxy.org).