Weekly Oil Report: Will Cuts Push the Market Once More?

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On June 2, Brent oil closed around $76.20 and WTI settled above $71.83.

Although there was news about a tighter supply, crude oil couldn’t get enough momentum to pass through 80. You can see that the price is still struggling at 78 dollars.

The price jump on Thursday and Friday was also powered by the double-digit decline of U.S. active drilling rigs indicating more tightness in supply.

In addition to the decline of rigs, expectations of a new cut came true. The OPEC meeting finally took place on June 4 after several postpones in the agenda. The cartel decided to add up another voluntary cut by 1 million bpd. They would also extend the output policy until the end of 2024.

Considering the weak reaction to tighter supply on Monday, it might be wiser to monitor price actions in the New York session before making decisions. As it is marked on the chart, Brent has been in the range of 71 to 87 since December 2022. The sideways movement shows serious confusion among market participants.

The Bitumen market was also waiting for OPEC’s decision and the effect of it on oil prices. Considering the low momentum of crude at the moment and the onset of monsoon in India and several other countries, the market is weak. Compared to the same time last year, there is a noticeable decline in the export rates.

Here, you can check several bitumen prices. If you are looking for bitumen, Contact us for exact prices and more information.