Weekly Oil Report: Supply Restrictions Driving Crude Higher

On Sep 8, Brent oil closed at $90.39 and WTI settled around $87.18. Watch crude technical analysis and comment your ideas:

Crude oil finally broke through the 10-month resistance shown in blue. It has got to 90 and it may get to 92.

On the weekly chart, the price closed above the 23% fib level and it can be a start for new growth. However, it might be slow. 81 is now a strong support for Brent.

A tighter supply is one of the main stimulators of the price. Saudi cuts are coming into action and the tightness is getting serious for more market participants. The US oil inventories also recorded another decline last week.

Demand is also growing from China’s side. The other parts of East Asia are also getting back to business.

The economic concerns are actually what keep oil prices going for a sharp run at the moment. The stronger dollar is putting a cap on the price. Traders need to watch for both crude and dollar.

If crude continues its growth, bitumen and fuel can have nourishing markets. In this case, it is possible to see India raise bitumen prices in mid-September after 4 increasing stages.

The changes in the Iran Stock Market grew bitumen by 30 dollars. The increase may continue in the next week.

If you need bitumen, contact me for the exact price.