Weekly Oil Report: Strong Demand Projections Boosting Positive Sentiment

Oil hiked above $ 80 after 4 months. On Friday, Brent closed the week at $85.52 and WTI settled around $80.74. Watch crude technical analysis and comment your ideas:
Bullish sentiment could override the tense zone to start a new rising leg. New high and low are shown on the chart. Since the zone was properly strong, you can see a pullback to the area. At the current Fib levels, the pullback is normal. The purchasing power indicators look to be rising too.

Supply deficit is injecting more bullish sentiment. According to IEA’s latest report, OPEC’s production cuts can lead the market from a surplus to a potential supply deficit in 2024. OPEC+ is extending the cuts to Q2 and it probably continues to the end of the year.

Oil demand will stay strong in 2024. Major executives are expanding demand growth projections. OPEC sees a robust 2.2 million bpd for the year. IEA, on the other hand, is more conservative expecting 1.3 million bpd. Risks of Red Sea and Houthis attacks increased fuel and oil demand too. Vitol estimates a demand increase of 100,000 bpd due to vessels diverting to longer routes.

Political and Geopolitical tensions are still complicating the situation for oil. Putin won another presidential election in Russia. After his victory, he launched the biggest missile attack on Kyiv.

Economic concerns still troubles Japan, China and the US. China keeps financial data release restricted. Japan, for the first time in 17 years, increased the interest rates from -0.1% to a range of 0%-0.1%. The US, in opposite, is warning about an interest rate cut in June or July.

Positive sentiment was detected in bitumen markets too. After a long time of stability, Bahrain increased bitumen rates by $ 20. Iran raised prices by a minimum of $ 15. East Asia had an improving market. Although India had a $ 7 decrease, it is expected to see a smooth market in April.

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).