Weekly Oil Report: Geopolitical Risks adds Up to Energy Crisis

The oil market was confused deciding on the trend. The price moderately grew during the week but September closed with over a 10% plunge in the price. Brent closed at $85.29 and WTI settled at $79.67 on Friday, 2 October. [embed]https://youtu.be/9idRAdfL904[/embed] The price is still loyal to the former wedge. But it is showing the signs of weakness in bears. If the price breaks the roof of the wedge, it can rocket toward higher prices. Crude oil might experience a slight growth during the first week of October but it is unlikely to soar through the resistance yet. The hurricanes in the Mexico gulf and the neighbours are causing trouble to the supply. The OPEC+ is also determined to implement another cut on 5th October. It is unlikely to see an end to the Russia-Ukraine war. Russia has annexed several states of Ukraine and geopolitical risks in the region are increasing. Europe’s condition is hectic as strikes and dismissals are rising in refineries. Demand looks to be dim in the region as well. The energy crisis is getting much bolder. The situation in Africa is better than in Europe and demand is floating due to the running construction projects. HSFO closed with a small growth in Singapore. The average fall and growth of last week were almost steady in this market. While Singapore bitumen increased by $5 on Friday, Korean bitumen decreased compared to last week. Bahrain's price fell by 15$ and India decreased the price by $10 on 1 October. India’s fall was lower than expected. In Iran, After the 16.5% decrease in vacuum bottom, refineries fell into a hot competition and the price increased in several stages by 13%, 35%, and 26% during the week. Iran’s internet is still restricted and traders rarely get the chance to update customers constantly. Currently, Iran's new steel drum is in the range of $395 - $405. Singapore bulk was $555 - $565 , south Korea 60/80 was $495 - $505 and Bahrain stayed unchanged at $425 - $430 on Friday, 30 September.