As you know, we have the weekly market analysis and recent fluctuations
in the following. As the first point to be mentioned, Brent crude traded
down 0.07 percent at $75.78 a barrel on the morning of Friday, July 2, 2021. Brent crude traded at $76.74 a barrel on Friday, hitting $75.84. Moreover,
West Texas Intermediate (WTI) crude is currently trading at $75.25 a barrel. According to experts, Brent crude is technically below $75.89-76.09
and is between 75.69-75.49. The dollar will also be supported.
On the other hand, the outbreak of a new strain of the coronavirus
known as “delta” has raised concerns in global markets. Respectively, the resumption of corona restrictions will have a negative impact on crude oil prices. Furthermore, the exchange rate of the US dollar against the Rial rose last week. Professional economic analysts predict that the exchange rate of one US
dollar is between 210,000 and 230,000 Riyals. Due to this increase, buyers
are looking for lower offers in the market. Iranian refineries compete in
Tehran with a base price of BV of up to 12%. Therefore, VB is
expected to rise again by about US $15 in the second half of the Iranian month.
It’s also needful to mention that the monsoon remains the major phenomenon
in India, with the Indian refinery reducing the price by approximately US
$13 WEF on July 1, 2021. However, following the reduction in new
COVID-19 cases and a less strict lockdown, it has there has been a lot of
demand in the country. To be more specific, the crude oil market
touched its pre-pandemic levels in the last week of June and soared to a two-year high. In fact, Brent closed the week at $75.11 and WTI soared to $73.97. Giants of the oil market did not declare any specific support for the crude;
therefore, the oil was nearly stable.
As shipping lines have faced huge losses in the first six months of 2021,
they are going to apply GRI in distinct steps until September. Consequently, an increase of about $1718 /MT is probable in Freight rates.
This article was prepared by Shirin Yosefi, the Content specialist and market analyzer of Infinity Galaxy