Weekly Oil Report: Shadow of Uncertainty and Mixed Sentiment

On Friday, Brent closed at $83.22 and WTI settled around $78.16. Watch crude technical analysis and comment your ideas:

Brent is still trying to surpass the big red candle recorded at the end of January. The movement is not strong but the purchasing power shows no divergence yet. Price is approaching the last high and we should see how it reacts this week. The sentiment is also mixed at the moment.

The uncertain war status continues in the Middle East and Ukraine. Israel-Hamas war is facing new attacks instead of any ceasefire. The condition has become so risky that Europe is warning. The situation is complex for Ukraine and Russia too. Death of Putin’s critic and Ukraine’s withdrawal from Avdiivka are changing the game. Therefore, sanctions might become tighter against Russia and there might be more support for Ukraine.

New reports about the world economy are hitting markets every once in a while, too. Interest rate talks in the US, plus Japan and Germany entering into a recession are confusing market participants.

On Monday, East Asian markets will start after the New Year Holidays. This can have positive effects on demand for oil and its sub-products.

Uncertainty is hovering in bitumen markets too. Prices are rising on a slow trend but traders are not sure about the next market movements. European markets are improving and Asia is expected to see an increase due to the end of the holidays.

Feel free to contact me for bitumen inquiries or more information.

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