Dollar and Monsoon Effects
Last week, the market of bitumen and petrochemicals was almost stalling to see the final moves of crude oil, nuke talks and rains.
Crude oil was yet under a strong price resistance. Traders are not much sure about the coming trend of oil since they cannot surely anticipate the economic fluctuations at the moment. The dollar is on its rising trend because of more inflationary reports.
In the Middle East, the new steel drum is currently in the range of $ 410 – $ 420 and the bulk bitumen is volatile in the range of $ 340 – $ 350. Prices have slightly increased in the region.
India declared a 44 USD decrease in bitumen prices today but it is unlikely to last long. Market participants believe that there will be a growth in price coming after this decrease. Usually, India’s bitumen price grows by getting to the end of the monsoon; therefore, the expectation is not much irrational.
In East Asia, the monsoon is also ending and the demand might be increasing in the coming weeks. Considering the rising construction projects in the area, traders can be more active soon.
JCPOA negotiations are likely to be succeeding. The increasing chance of nuke talks is devaluating the dollar against Rial. The fluctuations are making a hard time for traders.
The price of high sulfur fuel oil (HSFO) is increasing with a sudden tightening supply.
