Weekly Oil Report: Mixed Signals Sparking Uncertainty and Volatilities

Oil ended May with over 5% loss for the second consecutive month in favour of sellers. Watch crude oil technical analysis:

On Friday, Brent closed at $81.28 and WTI settled around $77.12. At first of the week, price penetrated 100 MA but it retreated on Wednesday. Market uncertainty is visible on lower timeframes.

Geopolitical tensions in the Middle East and Ukraine are expanding. The situation is not predictable due to complexity of events.

Russia has carried out extensive missile attacks on different parts of Ukraine. Ukraine’s energy ministry says electricity infrastructure has been the top target of Russian attacks in the south and centre of the country.

A cargo vessel was hit by several missiles near Yemen. Maritime security and shipping sources identified it as “Laax”, the Greek-owned and the Marshall Islands-flagged ship.

The US president, Joe Biden, proposed a ceasefire to Hamas and Israel on Friday. Hamas announced a positive view of what was discussed in Joe Biden’s speech. They also insisted on a permanent ceasefire, exchange of prisoners, the withdrawal of Israeli forces and the reconstruction of Gaza.

Despite geopolitical tensions in the region, weather conditions are troubling ships and traders. Hurricanes and sudden waves of rain postponed the vessel schedules. As a result, main seaports are experiencing heavy congestion. On the other hand, heatwaves in regions like India are causing a soaring demand for fuel and power.

Oil volatility has overwhelmed bitumen markets too. Except for India which decreased rates by $ 4.5 on 1 June, all markets stayed in their previous ranges including Europe, Bahrain, Iran, West Africa and East Asia.

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Latest Bitumen Price – 3 June 2024

This article was prepared by Mahnaz Golmohammadian, the export manager of Infinity Galaxy (www.infinitygalaxy.org).