Crude Making Price Corrections
Bitumen was stalled after the slight price corrections in crude. It has been three weeks that oil is not continuing the rally toward $100 and did not have any significant gain. The crude seems to be getting stabilized in the range of $80 to $85 and petrochemicals got suppressed moderately.
Bitumen price decreased about $10 – $20 in the Middle East, trading the bulk bitumen for $365 – $375 and the new steel drum was about $445 – $455 in the region.
The prices were almost stable in Europe, Africa, and China oscillating for $5 – $10. The demand was not harmed, even though the prices were a little down. The market still knows that oil is on an uptrend and it is just resting in the current prices. Therefore, traders are taking the chance to buy their cargoes before the next rally.
OPEC is reluctant to increase the supply because the cartel is really pleased with the oil situation. After years of a price war with US Shale, Saudi Arabia is now making profits out of the market to make up for the former losses. The US Shale also avoids opposing the cartel because it is not ready to have another competition as the company is just recovered and the restraints of drillers are making trouble.
While several traders are waiting in greed for lower prices, Bitumen Price suggests instant decision to use the good opportunities that are in the market now. The outlook of oil seems to be uptrend for several months later, therefore, market participants that are supplying ongoing projects should not hesitate or lose the cargoes.
This article was prepared by Mahnaz Golmohammadian, the Content specialist and market analyst of Infinity Galaxy.
