Weekly Oil Report: Fundamentals Stay in Favoure of Crude Oil

July started with over 2% growth for oil. Brent closed at $86.83 and WTI closed at $83.29. Watch crude oil technical analysis:

Price is still on the way to touch the blue resistance. In 4h timeframe, a short-term support line is guiding the price to hit 90. Unless the price crosses the line, it is valid. 

Growing demand in the peak driving season and lower supply by OPEC and Russia are constantly pushing oil markets. Potential hurricane season adds up to supply disruptions in the coming months. Experts believe these strong fundamental factors can continue to take the price to 90$.

Geopolitical tensions in the Middle East are as strong as before. Disputes among Israel, Lebanon and Hamas continue. Hamas is offering a new ceasefire condition to stop conflicts with Israel but it didn’t have any feedback yet. 

On Friday, Iran, another key player in the region, had the final round of presidential elections. The new Reformist president, Massod Pezeshkian, might bring some changes in Iran’s foreign policies. 

Yemen’s Houthis launched explosive drone boats on a merchant ship in the Red Sea last week. These attacks are increasing the risk for Shipping lines which can lead to higher freights. 

In addition to crude oil, increasing demand and rising transportation costs are pushing bitumen prices higher. Iran increased vacuum bottom rates by 3.9% on July 6. Prices in India, East Asia, Europe and Africa also increased.


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).