Weekly Oil Report: June Ends with a Growth After Seven Months of Consecutive Decline

After 7 months of bad luck for oil, June finally closed with 4% of growth.

On July 3, Brent oil closed at $75.10 and WTI settled around $70.39.

Technically, oil has not recorded any lower low since March 20. The price is making an apex while moving sideways. The purchasing power will probably push the price to the upper resistance again.

From the weekly perspective, the price is now on the 50% fib level and it looks to be broken by the last candle but the selling pressure is not much appealing for a drop.

Since the US oil and gas rig counts are declining for another month, it can be possible to see volatilities in these price ranges.

Though supply is showing tightness from time to time, the market can’t be sure about restrictions due to demand obstacles. Even the shipping lines are in a dilemma since some are not even at the breakeven point with the current freights. However, they can’t increase the freights because demand is very low.

Nonfarm payroll on Friday will affect the market at least on the release day depending on how positive or negative the result is.

The stagnation of the market which happened by monsoon in many countries is continuing. India decreased its bitumen price by 37 dollars on the first of July. It seems that the price is now at the lowest of 2023 in India. everyone is looking forward to the onset of bitumen season in September.

Prices in Singapore and South Korea haven’t increased by a similar situation in China.

If you need bitumen, contact me for the exact price.