Weekly Oil Report: Uncertainty in Demand and Supply

Crude oil and bitumen were volatile in the expected range of last week. Brent finally closed at $103.60 and WTI settled at $95.00 on Friday.

In the daily chart of WTI and Brent, we can see that the falling momentum has decreased.

The price level around 93 is very strong for WTI and it is unlikely to break down. Accordingly, oil might grow through the week.

The situation is nearly the same for Brent around $97.

Demand and supply are still vague. While several experts foresee a demand increase, others expect a contrary situation. It is not much different from the supply.

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While Biden is constantly asking OPEC to increase production, the committee fails to reach its supply targets.

In the first week of July, Biden asked Saudi crown prince to increase production. Later, Saudi declared that the country is prepared to boost its production to 13 million barrels per day.

After Biden’s meeting, Putin also discussed oil and production with Saudi crown prince over the phone.

Biden is definitely under pressure by gasoline prices. Any collective action by Russia and Saudi can turn around the market.

The war in Ukraine carries on The US is sending more weapons to Ukraine to empower the country. Russians seem to invaded beyond Donbas.

Putin and Turkish president, Recep Tayyip Erodgan, met Iran’s supreme leader last week in Iran. It was the second trip abroad of Putting after the onset of the war.

Several political experts suggested that Iran might have a better condition in the Nuke talks by avoiding the Russian party.

According to Tanker Trackers, Greek oil vessels recorded 151 trips in May and June 2022. The activity has doubled compared to last year.