Weekly Oil Report: Tight Supply Fueling Bullishness

On August 4, Brent oil closed at $85.99 and WTI settled around $82.59. Watch technical analysis on your YouTube:

On Friday, the oil price couldn’t break 86 despite the sturdy growth in the last few days. The power of the current price level is undeniable but there is an interesting happening in the Ichimoku indicator in the weekly timeframe. For the first time after nearly a year, the Kijun line is crossing below Tenkan. It needs a few weeks to be evaluated but it is worth considering.

On the daily and hourly timeframe, things are as before. The candle was unable to break the resistance and it is stalling in the area. What happens depends on the purchasing power and the sentiment.

The sentiment is still almost bullish regarding tight supply. According to reports, the US oil rig counts have fallen to a 17-month low. The slow and steady decline of oil rigs has caused the lowest since March 2022 to the number of 525. Moreover, OPEC+ suggested no change in the output plan for August at Thursday’s meeting.

The economic reports are also showing a confusing situation. The US job, wage, and unemployment had mixed results for July. Although there were fewer jobs than expected, the unemployment rate and wages increased. This might affect the coming Fed hikes too.

On Friday, August 4, Singapore fuel grew by $ 16 and it got to its highest price since the first of 2023.

Bitumen in Spain, the Baltic, Turkey, and Greece increased by 30 to 45 dollars as well.

Despite the price growth in Iran due to the increase of bottom-line rates, the market expects another raise of 10% in the coming days. The coming week seems to be important for the rates. 

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