Early Signs of Weak Demand
Bitumen and petrochemicals have been lingering in uncertainty during the last week as well. It is not only bitumen but all the petroleum products that are uncertain about their futures. Crude oil volatilities and the intensified fear of the recession have been deeper than before. Refineries cannot foresee the demand and the final costs of their productions.
In the Middle East, bulk bitumen is in the range of $ 350 – $ 355 and the new steel drum is fluctuating in the range of $ 430 – $ 435. Prices decreased about $ 5 – $ 10 due to the uncertainties and supply objections.
The zero-covid policy is making trouble for traders and the economy in China. The country faces new lockdowns in its big cities every while. Refineries cannot plan their production due to the uncertainty of demand and lockdowns. Foreign traders are also uncertain about the arrival and departure of their cargoes in Chinese ports.
Fluctuations in crude oil price is another difficulty of the market. Prices fell for the third week after several consecutive weeks of growth. At the time of writing this report on Thursday 28 June 2022, Brent was $ 116.82 and WTI was $ 111.16.
Following the crude, energies and gas are hiking as well. Gas price seems to become an insoluble problem for governments. The US president might have a meeting with Saudi authorities in June. Although many Republicans are against such a meeting, it might be the only choice for Biden to restrain the price of gas and crude.
Despite objections against India, the country is still importing oil from Russia. Russia can pass Saudi Arabia and become the second largest importer of India.
