Bitumen Price April 2020

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• New Steel Drum Bitumen Price Now
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A brief analysis of the new steel drum bitumen price in 2020

Bitumen Price April 2020

As we all know, crude oil, oil, OPEC oil, and the WTI, all affect the bitumen price April 2020 in some way. In the following, we discuss briefly the items affecting bitumen price April 2020. Light sweet crude oil (WTI) contracts are the most widely traded energy products in the world. Refineries prefer light sweet oil because it has low sulfur content and it can produce high-quality products with high energy efficiency such as gasoline, diesel fuel, thermal oil, and jet fuel. WTI contracts play an important role in bitumen price April 2020 and energy risk management around the world because of their high liquidity and large customer base. Light sweet crude oil CFD contracts are priced at US dollars per barrel (1 CFD contract includes one barrel of oil, 1 lot includes 1000 barrels of oil). 1 barrel equals 158,988 liters.

What changes the bitumen price April 2020?

OPEC and its allies have agreed to remove 9.7 million barrels a day from world markets from May 1. This reduction in production will continue for two months, after which the world’s oil production will decrease by 7.7 million barrels per day by the end of 2020. Then, the reduction in production will reach 5.8 million barrels per day, which will last until April 2022. This will highly change the bitumen price 2020. It is said that Russia’s share of the new deal was an 18 percent drop in production, adding that this was the same quota that Russia had in the first contract to reduce production of OPEC. With the addition of new non-OPEC participants, Russia’s share of the overall decline is less than 15 percent. It is another factor that impacts the bitumen price April 2020.

Oil affection on the bitumen price April 2020

The reaction of the oil price to the contract to reduce production and the agreement of the oil producers of Group 20 to participate in this contract was very weak. Brent is currently trading at $ 32.22 a barrel, and West Texas Intermediate is trading at $ 22.72 a barrel, indicating that market players are still worried about demand in the oil equation. Regarding oil demand, the CEO of a petrochemical company said it was time to change the way the oil market is run. “In the long term, instead of setting a five-year average supply, we should aim to increase oil demand,” he added.

The world’s extractable oil resources are now about 1.9 trillion barrels, down 282 billion barrels from 13 percent a year earlier. Oil producers have cut billions of dollars in upstream prices in response to falling oil prices following the outbreak of COVID-19, and future explorations in remote and costly areas outside the Middle East will be severely damaged. Consequently, bitumen price April 2020 will change the following month’s bitumen prices.