Weekly Oil Report: Is A New Pump Coming for Crude?

Another week passed with new dips of oil caused by uncertainty and probable higher supply. Brent oil closed at $95.76 and West Texas Intermediate settled at $89.87 on Friday. Although the price of oil dropped last week, the daily chart of WTI is indicating a slight weakness toward moving down. Considering the MACD and the chart, bears might be exhausted causing a price growth possibility. All the ongoing events in the market including China’s covid zero policy and economic condition are making traders a little uncertain about demand. Traditionally, demand sets to increase by getting closer to September.  More Wall Street banks are also seeing another commodity growth in 2022. Ukraine president, Volodymyr Zelensky, warned about an attack on the 24th of August, the Independence Day celebration. The effects and results of the threat are yet unknown. Iran and the US agreed to continue negotiations with the European party acting as a go-between. Hope is increasing as talks go on resulting in fluctuations of Rial against Dollar. In only one week, Rial increased by 12% against dollar. Bitumen prices are volatile in most regions due to all ongoing events. There are expectations for a 15$ increase in bitumen in India by the first of September as the Monsoon ends and demand grows. Iran's market also might experience a 2.8 % increase in Vacuum bottom based on the current price formula during the upcoming week. Iran FOB Bandar Abbas is now in the range of $410 - $420. Singapore bulk bitumen was $573 - $577 on 19 August and South Korea 60/80 was $513 - $ 517. Geopolitical effects along with supply and demand variations are the most effective determinants during the coming week. By the way, if you are joining Global Bitumen & Solvex 2022, don’t forget to show up at Infinity Galaxy. We’ll be pleased to have you by our side during the exhibition.