Bitumen Price

Bitumen Price

As you might know, it is a vital material for many industries and has

become highly applicable lately. That has many grades and by-products,

all of which have various applications and uses. Except for the grades

and functions, this product has another important item that is

highly noticeable, the bitumen price.

To some extent, the bitumen price and its process is even more highlighted

than the product itself. Why is this so? This question may pop up in your mind. To answer this question, we should refer to factors such as the oil price, Petrochemical products demands, the condition in the different markets,

and the global happenings all will affect the bitumen price. Therefore, this is a generally complicated matter that needs accurate analysis and forecasts. Subsequently, the bitumen price itself will affect some other particularities

and elements to some extent. In other words, whereas some matters impact

the bitumen price, the bitumen price itself causes some changes in some

trades and schemes. In the following, we will discuss the items that

affect the bitumen price and the changes in the prices in recent years.

What Items Affect Bitumen Price?

They mainly derived bitumen from the vacuum bottom in oil refineries. Bitumen manufacturers refer to it as the heaviest part of crude oil,

which is the base material for producing bitumen. Therefore, the VB price is extremely influential in bitumen and other petrochemical costs. The below-mentioned items affect straightly on the Vacuum Bottom.

(VB) Price:

Fuel price

Crude oil price

Political circumstances

Currency rates equality

Bitumen demand and supply rates in the market, and

The rate of demands on the hot season of the year when constructions are increased.

These details are responsible for the vacuum bottom price moves. Look at the figures below to learn better.

Average annual OPEC crude oil price 2017: 52.51 USD

annual OPEC crude oil price 2018: 69.78 USD

Average OPEC crude oil price 2019: 63.83 USD

How did the bitumen price change in 2017-2018?

In 2018, according to the global growth of GDP, developing countries’ requests

for bitumen, and an increase in the global oil prices, bitumen price

reached a better state compared to 2017.

2018, three major incidents in the world influenced the Middle East,

changing both the demand and the supply side of the price. In January 2018, Venezuela’s oil production falls to its lowest level since January 2003. The crude oil prices have gone up, as a result, leaving no other choice to

refineries to increase bitumen prices as well. In May 2018, the United States

left the Iran nuclear deal, forcing more turbulences to the price and

market afterward. Another challenge that was imposed on the bitumen market

in May 2018 was OPEC’s decision to condense the production of crude oil. Overall, the variations of bitumen prices reached their highest level during 2018. You may be surprised to find that the lowest value of bitumen this year was

290 USD (in February), while the highest rate happened to be 370

USD (in September), more than 80 USD.

Value change in 2018-2019?

In 2019, the world’s political chaos imposed more fluctuations to bitumen

prices in comparison to 2018. The year started with the U.S and

China’s trade war, driving the prices of both crude oil and bitumen up. In June and May, Persian Gulf ship attacks, Iranian shoot-down of U.S. drone,

British, and Iranian tanker seizures set a price record for 2019.

The last geopolitical incident that could shake up the bitumen price in the

Middle East, was the Attacks on Saudi Aramco oil facilities, in September. Despite the bitumen Market demonstration in 2019, bitumen prices went

through a surprising slowdown in the second half of the year. In October, the bitumen Market began to lose its value, as a result of the

International Maritime Organization’s decision to set new shipping fuel standards.

Bitumen value change in 2019-2020?

The year 2020 was quite an exigent year regarding the coronavirus crisis and

the economic depression. Before the Coronavirus pandemic, Brent crude oil

rose to its highest level in the first four months of 2020, reaching $70 on

January 6.

With the contagion of the Coronavirus in the Middle East and Europe,

as well as the closure of China’s borders, Brent crude oil hit $35 on March 9,

and Brent oil has been declining since then, reaching $9 on April 21. WTI oil

price changes have followed a similar trend. On January 6, WTI oil reached $63, which was the highest price in the current year. Two falls in the prices occurred on March 9 and April 21. They recorded the minimum WTI oil price at $11 on

April 21, 2020. Moreover, OPEC’s highest oil price in 2020 was recorded

on January 6 at $70. The lowest price for this oil on April 22 was $12. On March 10, a $13 drop-in OPEC oil happened.

All the above-mentioned fluctuations resulted from the coronavirus crisis. As we all know, as the oil value changes, the price will change undeniably.

Generally, the prices in the Middle East have more fluctuations,

since the U.S has more conflict with Asian countries such as China, Iraq, etc. However, European countries have complications in their economy and prices.

Up to now, we have discussed the variations of bitumen price,

effective items on this subject and the trends of the price since 2017. Infinity Galaxy .

Bitumen price 2021

Besides,we mentioned the fact that global events can also have a great impact on

the bitumen and oil market. For instance, the coronavirus crisis had a

noticeable influence on the market. However, this is not the entire story

since we will see further changes in the future market.Bitumen price List 2022

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