Weekly Oil Report: New Tensions of the Middle East Affecting Crude

On Friday, Brent oil closed at $78.35 and WTI settled around $72.74. Watch crude technical analysis and comment your ideas:

Brent failed to pass 82 once again. The sudden rise of the price couldn’t overcome the MA 50 while leaving a long shadow. The sentiment turned extremely bearish at the end of the week despite expanding tensions in Yemen. The market is confused but bears are still dominating.

Geopolitical tensions in Yemen were the leading driver of crude oil to temporarily grow above 80. The fresh attacks of the US and UK on Houthi's positions in Yemen escalated the Red Sea concerns. It fired up fears of shipping lines to divert their tankers from the region which could end up in higher freight rates.

Despite the sudden tensions, experts are worried about the excess of supply. Citi lowered Brent's 2024 forecast to $74 on Friday accordingly. It also highlighted the risk of the Middle East in the near term. 

In bitumen market, Singapore and South Korea had a slight increase. Bahrain stayed still and Africa’s prices are climbing due to rising freights. Europe also had an increase because of extreme cold. In Iran, rates stayed unchanged despite vacuum bottom increase.

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