Weekly Oil Report: Is Crude Slump Over?

Bullish sentiment ignited in crude and bitumen in the last days of July. Movements are growing are growing in various markets.

Brent closed at $103.31 and WTI settled at $98.28 on Friday.

Brent and WTI closed below last month in July. The price had a small growth on Friday due to a stronger concept of tight supply.

In the daily WTI chart, the momentum and projection of downside moves have decreased. Yet, traders were not much sure about higher prices.

August can be a reverse of the falling trend that started in mid-June.

Uncertainty and volatility are very high in the market but the price has strong resistance at $91 -$92.

As the fear of recession eases and supply tightening factors grow, the bullish sentiment gets stronger. US reports show that the country’s oil production actually fell in May compared to the former months. It happened while the US looked to be seeking more supply volume to restrain gas price.

Supply disruptions are currently the main dominator of prices.

Bitumen, affected by oil and fuel, was stalled during the week since traders were uncertain about how to act. Sparks of new movements started by Friday and got stronger afterwards.

Consequently, Iran vacuum bottom increased by about 10 – 15 % in only a day. New steel drum Bandar Abbas FOB is currently in the range of $365 – $370.

You can check the Bitumen price page to know the bitumen prices of different grades in the Middle East and India.

On July 29, Singapore bulk closed in the range of $558 – $562 and South Korea 60/80 was $498 – $502.