Weekly Oil Report: War Risks Threatens Global Trade

On Friday, Brent oil closed at $78.87 and WTI settled around $73.39. Watch crude technical analysis and comment your ideas:

The weak movement of crude oil continued to the last week of 2023. Although the price increased to 80 it didn’t get to break the quarterly pivot point. Price is also struggling with a Gann fan resistance and it is unlikely to break out considering the current divergence in MACD. A range of 71 to 79 is still valid for Brent.

The US is recording the highest production levels at the end of the year and it will be a huge problem for OPEC. Forecasts also see $100 oil unlikely for 2024.

Demand didn’t have any significant changes since markets were on hold before the Christmas holidays.

The biggest concern in last several days was disruptions in the Red Sea that caused uncertainties in maritime trade. Major shipping companies like MAERSK and Hapag-Llyod have suspended their services for the region. The interruption means longer journeys, and more fuel consumption leading to higher freight costs.

While bitumen prices are now at the lowest rates of 2023, concerns about freight changes in many destinations are pushing clients to finalize their orders sooner. It seems that the changes in shipping costs will end up to 50 $ of increase for some ports. At the ending days of the year, the market is getting more complex due to the fall in prices, regional tensions, and shipping disruptions.

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

This article was prepared by Mahnaz Golmohammadian, the export manager of Infinity Galaxy (www.infinitygalaxy.org).