Reluctant Traders
Inflation pressure lingers on all markets after reports on its vigorous soaring movements. Export product prices are fluctuating in various regions according to the local currency changes. Bitumen and petroleum products are volatile as well. In the Middle East, Bulk bitumen is moving in the range of $ 355 – $ 365 and the new steel drum is now in the range of $ 435 – $ 445.
Europe and China are still struggling with demand, supply and uncertainties. Europe is in fear of war expansions to other parts of the continent and China is again on the verge of a covid breakout. The country was recovering from lockdowns and its demand outlook was improving. But the reports show that the virus is circulating in the community. This event endangers the demand of China and the demand volume of the global market. Saudi Arabia has already decreased its export volume to China for July, in addition to increasing its oil price for Asia and Europe.
A tight supply of fuel is provoking the bullish sentiment of the market on crude and energy. The crude is still on the way to its historical top price. Russia, which was expected to be out of the market due to sanctions, is now increasing its export to India and China.
Petroleum products are under pressure on two sides. First, it is the soaring crude price pushing bitumen and other petroleum products higher. Second, it is the fluctuations of currency exchange rates. For instance, Iran is experiencing a diminishing value of the Rial against the Dollar. The rate is changing on a daily basis and exporters cannot decide on the final price of the products.
