Weekly Oil Report: Sudden Changes of Rates Following Less Tensions

Crude oil ended April flat and started May with a loss due to easing Middle East tensions. In the last two weeks, Brent could hold above $ 89, however, it didn’t last long. On Friday, Brent closed the week at $82.78 with a $ 7 decrease and WTI settled around $77.93. Oil prices have touched 100 MA for the first time since February. Losing the support can change the trend for a while.

Middle East tensions slowed down. Thousands of Israelis demand truce in Gaza. Hamas negotiators began talks about possible Gaza ceasefire in Cairo on Saturday. If tensions really back off, oil prices have a chance to stay at current rates.

Interest rate was the other pressure factor on oil prices. On Wednesday, the US federal reserve announced to hold interest rates steady at 5.25% to 5.5%. obviously, inflation is still a burden for the US.

OPEC reports show a drop in April production. The cartel is also seeking compensation plans for overproducing members.

Markets of bitumen had different approaches. Bahrain price suddenly increased by $ 50 on 4 May. Iran VB also increased by 11.8% on Sunday. Prices in Singapore and Korea have been stable.


Latest Bitumen Price (6 May, 2024)