After two months of fluctuating prices, oil prices have reached 80 USD, however, it is uncertain whether it will be able to surpass this initial level.
It is generally expected that the Brent crude oil price will gradually increase because we expect that global oil inventories will decline over the next five quarters.
As you can see in the daily chart, we forecast that if the Brent crude oil price breaks downtrend line and crosses 82 USD, it can reach the range of 88 USD.
The traders of crude oil are monitoring the price movements and waiting for a new direction that ends the long going sideways. The economic reports are not very promising for the world. Different countries are worried about their future in the economy when they see a possibility of a recession.
Bitumen prices rise in the Middle East
In the last 3 weeks, bitumen prices in the Middle East have rised. Competition on the vacuum bottom price is the main reason for this rise but we can’t neglect the effect of changes in dollar and dirham exchange rates.
It is also expected that the price of bitumen will increase again next week.
The effect of Crude oil rise on the price of petroleum product markets
Crude oil increase last week injected more bullish effect into petroleum product markets. The situation with oil is still complicated since the participants cannot decide on the economic state and the supply. The economic reports are showing better status after dull reports for months. There is also a possibility of the US Fed increasing the interest rate in the July meeting. Supply and demand are also in the shadow but with new reports people are noticing the supply shortage more than before. Demand seems to be in good condition compared to pre-pandemic.