Weekly Oil Report: Middle East Tensions Shaking the Markets

On October 13, Brent oil closed at $90.90 and WTI settled around $87.68. Both crude benchmarks headed for a gain this week. Watch crude technical analysis and comment your ideas:

Prices started soaring on Monday due to the Hamas-Israel war. It actually pushed the prices to open with a 2-3 dollar gap.

Broken through the S1 pivot line, Brent is again above 90 with an increased purchase power and bullish sentiment. Yet, this area is strong and right now the world is waiting to see what the war parties’ next decisions are.

Some are also comparing the situation to the 1st oil crisis in 1973 when crude oil jumped to 12 while it was only 3 dollars.

To recap, the war and the sudden reinforcement of sanctions on Russia are the two biggest price drivers. These two factors didn’t let crude oil dip more after IEA reported an oil inventory build of 10.2 million barrels on Thursday.

Players of petroleum products are also uncertain. In bitumen, demand is increasing but they can’t decide due to the ups and downs of the market. Many see the recent increase in fuel and bitumen prices as a positive midterm signal.

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