OPEC Cuts Continue
Following crude and commodities, traders become a bit hesitant in several markets of petroleum products. Yet, the market was not stopped thoroughly and most traders can get back on track if they find crude oil stable in the current price channel. OPEC stated in their last meeting in 2022 on December 4th that the cartel will continue the cuts for the 2 first quarters of 2023.
Oil had been affected by an unsuccessful price cap over Russia, China’s anti-zero covid protests, and fuel fluctuations.
The new set of embargoes has started and they seem to have no effect. Russian oil was already being traded in the range of $ 60 – $ 70 with the big discount strategy. Therefore, the embargoes could not hurt the market. Main buyers, such as India and China, clearly stated that they do not intend to lose the opportunity for the huge arbitrage.
People are still protesting against the zero covid policies and it seems that the government might loosen the regulations. If it really happens as expected, the demand in the region will increase. China is the 2nd largest oil consumer and the demand will definitely affect the market.
Fuel was very volatile during the week. First, it experienced a huge increased then on Friday, it underwent a sudden fall by $ 8.
In the Middle East, the new steel drum bitumen is in the range of $ 420 – $430 and the bulk bitumen is in the range of $ 380 – $ 395. The bulk of Singapore is volatile in the range of $525 – $535 and South Korea is currently $ 420 – $ 430.
