Supply Boost and Covid Fears Surrounding Bitumen
Despite all the crude fluctuations, bitumen and other oil products did not change significantly. In the Middle East, the bitumen price of the drum was around $345 – $364 PMT, and bulk bitumen was traded $275 – $290 PMT. The bitumen price was nearly steady in Europe, including Netherlands Rotterdam and Belgium Antwerp. In some European countries, such as Germany, bitumen prices experienced a small change of $5 to $10 PMT.
The world is in the fear of covid once again. The new variants of the disease are highly contagious and are spreading in many regions. The new outbreak has frightened markets and traders vastly. The vaccinated people have also got the new variants of delta or delta plus. These two covid variants have risen concerns about vaccines efficacy. Some of the politicians have been also infected recently.
Affected by the market fears and the supply boost, crude plummeted about four dollars in just one day. OPEC tried to compromise its cut plans to regulate the oil price in concern of paced rise of the oil. Regarding the inflation and production levels of the companies, the group decided to increase some countries’ crude production levels, including Russia, Saudi Arabia, and United Arab Emirates (UAE).
Bitumen and all the other oil products are normally affected by the crude; however, the price of oil has not been stabilized at the moment. Traders are optimistic about the long term demand for bitumen, asphalt, and other construction materials. Despite all the covid fears, there were no valid reports on postponing the construction projects. The Middle Eastern demand has not changed as well. Traders need to observe the market carefully in the coming days, especially after the Muslim holiday, Eid al Adha. You can also consult with trustworthy refineries and bitumen suppliers.
