Oil Pressure Still Exists
Oil was still dominating the petrochemical markets, including bitumen, during last week. Tensions were real as the oil opened at high prices above $120 and had the biggest drop of recent months in just a week. The bitumen market was volatile in various regions according to the effects of the Russia and Ukraine war.
In the Middle East, traders were uncertain about the prices. They tried to keep prices in a relatively steady range with fluctuations around + $ 5 / – $ 5. The bulk bitumen was still in the range of $ – $. In Europe, prices were more volatile according to the chaotic situation of the Ukraine war. The supply is facing new obstacles and prices are shifting in import oriented countries. China has requested the refineries to halt the production for March until the situation becomes more stable. The country seems to be after a chance to use the volatile market of energy and petrochemicals by the applied sanctions against Russia.
Since Russia was a significant supplier of the oil and energy market, the US and Europe are now potential markets for oil oriented countries.
The energy crisis of Europe is still on the run. Despite the sanctions, it seems that gas is still running to Europe from Russia. The fact that sanctions could not get the import to zero helped the price to stop the sharp hikes but the market is still highly fluctuating. Traders are confused with prices in the commodities and petrochemicals. Yet they have not stopped their purchases. Most of the market participants prefer to run their business with the best prices that they can find due to the unclear war condition.
