Weekly Oil Report: Crude and Petrochemicals Amused Traders

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The crude oil market amused traders in the last week of June by reaching pre-pandemic levels. Brent closed the week at $75.11 and WTI soared to $73.97. We did not have any market mover news during the week; therefore, the oil kept moving on. The purchasing power is nearly weak at the moment. Accordingly, we may not expect higher prices unless we have support from major powers and OPEC. $75 is a strong resistance for the oil price, hence we shall let the market decide then trade safely.

As the market expected a price correction for the USD, the dollar index fell about 0.62$ during the week. Dollar movements are almost strong enough to break to higher prices. However, we shall see how much the unemployment rates and new financial reports are promising during the upcoming weeks.

The Energy Information Administration’s (EIA) reported a 7.61 million decrease in the US crude oil inventories. This is a positive sign on the demand side.

The highly positive sentiment of the crude oil market has attracted a high amount of free cash flow for producers. Accordingly, oil companies such as Shale Oil can have a fruitful year.

Oil products were rising as well during the week. For instance, the US LNG exports have risen despite a 65-percent jump in the shipping cost of the liquefied natural gas. Unlike last year when the LNG demand was very low according to the pandemic restrictions, LNG exports of America may reach a new all-time high.

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