Weekly Oil Report: Positive Sentiment Still Has the Markets

On Sep 29, Brent oil closed around $92.07 and WTI settled at $90.71.

Technically, the market expected oil prices to slow down after reaching the 96-dollar resistance. The news about the US rising production and the coming OPEC meeting added up to resistance. On the weekly chart, you can see the price supports at 90 and below. On a closer look at the daily chart, you can see a double top forming too.

The changes in supply and demand outlooks confused many traders. While the risky cuts of OPEC seem to be paying off after a couple of months, U.S. oil production has probably hit a high record since November 2019. Despite the efforts of the U.S. to stop oil growth, the bullish factors are still strong. The market is eager to know what OPEC decides on Wednesday, 4 October.

The recovery of China’s factory activity in September shows that the country’s economy is stabilizing. It means that demand on China’s side is expected to increase even more than now.

The positive outlook has been strong in bitumen and petroleum products too. India increased bitumen prices by about 11 USD on October 1. Following the rising fuel and oil, other producers are also increasing their rates.

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