Uncertainty Running to the Market
There was a calm market in the last week of July. Bitumen price was still steady in the Middle East while the drum was fluctuating between $345 – $364 PMT and bulk was between $275 – $290 PMT. Africa, Europe and China also experienced a similar situation. The prices were only volatile about $ -5 / +5 of the second week of July price in various regions.
Coronavirus is again spreading drastically in many countries. The virus is going through new mutations, and every new version of it is getting stronger. After the Delta plus variant, the Lamba variant is appearing much more powerful. Scientists believe that this mutation might be resistant to the currently available vaccines as it is spreading quickly over the United States and the United Kingdom.
The virus quick-spreading rate caused lockdowns in some regions. If the virus keeps getting stronger and the vaccines cannot stop it, the world might shut down once again. Although governments have some concerns about it, they have not imposed any new policies yet.
The construction projects and refineries production rate have not been delayed either. Experts still assume that the new outbreaks will not affect the anticipated demand rates of the market.
The build back better plans of the governments were not successful as well due to the pandemic. Experts say that carbon emissions will hit high in 2023 if the green energy plans fail.
Bitumen and most petrochemicals were stable following the crude prices. However, some oil products such as recycled oil and base oil faced supply shortages for their raw materials that resulted in higher prices of the market. Traders do not suppose any change in the demand and prices at the moment. We shall see how crude leads the market in the upcoming weeks.
