Weekly Oil Report: Geopolitical Tensions Conquered Over Economic Concerns

Brent recovered by about 4% this week and set the second straight weekly gain. Watch crude oil technical analysis:

On Friday, Brent closed at $74.68 and WTI closed at $71.19. As shown on 1h chart, price has been moving along the yellow support. Momentum is a little down and the price is moving sideways but there hasn’t been any breakthrough yet. The main movement pattern is shown on the daily chart. 

Tensions between Israel and Hezbollah are soaring. Hezbollah warned Israel about coming revenge after exploded pagers and walkie-talkies. As a result of exploding wireless devices, 20 people had been reported killed and 450 wounded. Lebanon citizens are advised to stay away from crowds. 

Rising disputes in the Middle East also resulted in a hectic situation for ships in the Red Sea area. The increased risk of regional strikes has more than doubled the insurance cost and freights. 

Freight costs are also increasing due to the onset of export/import season. Traders are facing sudden pressure from shipping lines with rising freight and additional expenses. 

The US central bank lowered interest rates by 0.5 percentage points on Wednesday. The cut was bigger than usual but Jerome Powell believed it was needed as price rises ease and job market concerns grow.

Trend of bitumen markets looks to be flipping. Although prices in Europe and India decreased, other markets are rising. Considering the upward movement of oil and the Middle East tensions, we can also expect an increase in bitumen. 

Feel free to contact me for any bitumen inquiries. You can also check an estimate of price for your required destination port on Bitumen Price Today.

By Mahnaz Golmohammadian, the international sales expert of Infinity Galaxy (www.infinitygalaxy.org).