Crude oil posted its biggest weekly gain since March 2022, tipping the market. The bitumen also warmed up last week. Is this really a trend reversal?
Brent closed at $98.33 on Friday, October 7 and WTI was trading at $93.13. On the WTI daily chart, we can spot a hidden divergence between the MACD and the price. Friday’s move was strong but insignificant against strong yearly pivot resistance and remained below the 200 MA. It can just be a false outbreak.
OPEC + has decided on a new cut of 2 million BPD for November. Biden thinks the move is a short-sighted decision.
New US economic reports indicated strong inflation. As a result, the strengthening dollar is putting more pressure on other countries and currencies. Although the Saudis have stated that they have no intention of starting an oil war with the United States, the price of crude oil is spiraling out of control and could certainly affect the outcome of the US elections in November.
The Chinese economic report shows that the country is in dire straits after the pandemic.
On the other hand, Europe has gas and energy problems much more serious than ever. Many believe that the war in Ukraine is entering a new phase, as Russian forces have evacuated several places, leaving behind weapons and equipment. The rapid withdrawal has made many suspicious of Russia’s intention to use nuclear weapons. The massive explosion of the Kerch bridge linking Russia to Crimea has heightened fears. The price of bitumen rose in the Middle East, helped by growth in fuels.
Iran had fierce competition for the VB, just over 40% on October 9. There are also new rumors about the resumption of JCPOA talks.
India is now uncertain about the validity of its bitumen price cut. The rupee has hit its lowest rate against the dollar in recent years and traders are shocked.
Currently, the new steel drum from Iran is between 400 and 410 dollars. As of Friday, October 7, Singapore bulk was $560-565, South Korea 60/80 $500-505, and Bahrain $425.
This article was prepared by Shirin Yousefi, the Content specialist and market analyst of Infinity Galaxy.