Boosting Refineries’ Output
Comparing to May, bitumen price started June at lower prices in most parts of Asia, including Iran and Singapore. In South Africa, however, we experienced a $10 increase in bitumen compared to May. The price boost was a bit more in North Africa and the bulk bitumen hiked up about $15 per barrel. In China, prices rose roughly about $5 per barrel.
Generally, in all countries, the prices have increased compared to the same time last year when countries were under the pandemic restrictions. The price and consumption level seem to be eager to hike up more than the current.
Oil price was a strong incentive driving bitumen price higher and it is still lingering in the $70 zone at the moment. Oil market fluctuations usually exert an influence on bitumen and petrochemicals; therefore, it is wise to be aware of the oil trends.
Around 80% of produced crude oil is dedicated to gasoline, diesel, and jet fuel.
The other 20% represent the produced oil products, including various grades of bitumen, caustic soda, and paraffin.
Considering the new wave of environmental concerns and more popularity of renewables, we may see a decrease in carbon fuels and oil-based fuels production and consumption. The decrease will lead to a better opportunity for producing more oil products and petrochemicals.
Oil companies and oil products refineries suffered huge losses last year through the pandemic. Currently, they are trying to make up for the losses by boosting production.
According to Bloomberg, several Asian refineries have faced negative profit margins due to the resurge of Covid waves in some parts of the continent. However, they are still looking forward to getting to summer because they anticipate soaring demand and road project expansion.
