China’s Economic Reopening Policy
According to a recent analysis of the market, the price of Brent crude oil was unable to rise above $90 during the previous week, with its highest price being around $88. The main cause is the resistance brought on by the 90-dollar oil price, which is brought on by the expectation of a second economic downturn in 2023 and the worry over the potential spread of the coronavirus in China. Typically, anything that costs more than $90 needs powerful components.
Meanwhile, the senior IMF official reiterated on January 13 that 2023 will likely be a challenging year for the global economy. She added that after two years of disruption brought on by its zero-covid policy, China should keep up its economic reopening strategy.
While financial institutions predict a slowdown in global economic growth this year, Ms. Georgieva asserted that China’s return to normal conditions will likely be the most significant factor.
Singapore Bitumen – A New Year for the Bitumen Market
However, on January 25, following the opening of the Singapore Stock Exchange in celebration of the Chinese New Year, the majority of the commodity symbols were up, resulting in Singaporean HSFO 180 CST rising by $6 to reach $410 and Singapore bitumen reaching $510, up $5.
Bitumen from South Korea was priced at $420.
The bitumen market gave mixed signals last week; while some rumors suggested that Bahrain’s bitumen prices would drop another $50, they were offered at $325 for the sixth week in a row.
The price of bitumen is expected to drop on February 1st, according to news reports that came out of India. However, the news now indicates that prices will only drop slightly or stabilize. There are hopes for economic recovery in India following the publication of recent news indicating that the country’s domestic bitumen demand will likely exceed 8 million tons in 2023.
In Iran, there was fierce competition among bitumen producers for the purchase of vacuum bottoms, and the average level of competition was over 60%, despite the rial’s unheard-of decline in value against the dollar. The GRI’s announcement of shipping for export loads was another factor contributing to the rise in the price of Iran’s export bitumen, in addition to increased competition.
According to previous predictions, February is likely to be a better month for exports and business activities due to the conclusion of the Chinese New Year holidays, the relative stability of the oil price in the 80 to the 90-dollar range, and market demand.
