Weekly Oil Report: More Crude Bullishness by New IEA Reports

Above 4% growth of crude during the first week of November made many hopefuls for $100 oil. Bitumen and fuel had lively markets as well.

Brent closed at $98.57 and WTI settled at $92.44 on Friday, 4 Nov.

October, as expected, brought oil growth after 4 months of fall. November also opened with positive sentiments. During its first week, crude oil grew by 4.71 %.

The volume and MACD are showing slight weakness in bulls. We might see oil moving a bit more slowly during the week.

Rumours say that China is again about loosening zero covid policies. Although it was not an official statement, markets are showing a positive outlook for increasing demand on China’s side.

The new reports of IEA show that the oil inventories had decreased in October. The supply was already at risk by Russia and Ukraine war.

The only barrier in front of oil prices looks to be the US Fed’s decision to increase the interest rates in their next meeting. The US unemployment rates and wages indicate that inflation is still growing.

The Middle East tensions are very likely to rise as Netanyahu is elected in Israel. The US election on November 8 is also important for the region besides the US political parties.

Fuel and bitumen grew along with crude oil too. Demand is expanding in the Northern Hemisphere and it is evoking the prices.

India increased the bitumen price by $30 on 1 November. Singapore and South Korea raised prices by $5. Iran also had more hot competition over vacuum bottom with an average of 50%.

Currently, Iran’s new steel drum is in the range of $ 420 – $ 430. Singapore bulk was $ 565 – $ 575, South Korea 60/80 was $ 450 – $ 460 and Bahrain was $ 425 on Friday, 4 November.

This article was prepared by Mahnaz Golmohammadian, account manager and market analyst of Infinity Galaxy.