OPEC+ Speeds Up the Rally
Markets were highly volatile during the first week of February. Petrochemical prices skyrocketed to the highest rates in recent years. Crude oil rally to $ 100 seems to be faster than ever. Financial institutions believe that prices above $ 100 are not much far from us. Currently, crude oil is around $ 92 and it is still rising higher. If the forecast becomes true, the market will face an enormous price increase for every petrochemical.
In the Middle East, bitumen prices increased about $ 10 – $ 20. Bulk bitumen was fluctuating in the range of $ 395 – $ 405 and the new steel drum was volatile in the range of $ 435 – $ 455 in the region. In Europe, bitumen was volatile between $ 490 – $ 500 per metric ton in Rotterdam, Netherlands (FOB price). In Africa, bitumen prices increased in the range of $ 5 – $ 20 depending on the region. The highest increase was for the eastern states while southern areas were less volatile. Chinese New Year Holidays could not impress the market as well since the movements were so strong.
Other petrochemicals, including caustic soda, recycled oil, and lubricants, increased along with crude and bitumen. Although several traders had been waiting for lower prices, the market showed them that it is stronger than before and continued the growth. Traders are now only looking for the best rates they can find to do their purchases before further increases.
Fundamentally, it is not impossible for crude oil to rise above $ 100 soon. Market participants have to keep an eye on the crude and energy field to track every movement for their purchase strategies.
