Exchange Rate Fluctuations
The prices of bitumen and petroleum products were unchanged last week despite the fall of crude oil. Singapore’s fuel also increased surprisingly during the week. Crude oil, as expected, dropped after growth on Monday. The sharp decline can be related to the sudden reports of US oil inventories which showed an increase.
The economic reports of the US and the world show that inflation is still running in the countries. The US Federal Reserve is still hawkish about increasing interest rates.
Most market participants are in limbo. They cannot decide whether to buy or not. The construction projects are going on and surely need the bitumen but are hesitant about the price.
In the Middle East, prices were highly volatile due to quick and constant dollar exchange rate changes. Most reliable suppliers avoid quoting customers since they cannot foresee their next step. Things are very hectic in the market and it might continue until the exchange rate becomes stable.
The bulk of Singapore is volatile in the range of $ 505 – $ 515 and South Korea is currently $ 440 – $ 445.
