The bitumen market was struggling with many inconveniences during last week. The imprecise conditions of crude, freights, dollar, Iran-US negotiations, and Covid were troubling traders. As we approach the end of 2021, the situation becomes more hectic. In the Middle East, the bulk bitumen price was about $380 – $410 on the first of November. The new steel drum bitumen was oscillating around $475 – $485.
Prices were almost steady in Europe. Netherlands, Rotterdam price was in the range of $475 – $490. Africa experienced a price decrease in the range of $10 – $15 in all regions except East Africa. Eastern regions had an increase of $37. China also underwent price fluctuations in the range of ± 5 during the same period.
The US imported 12.61 million barrels of bitumen from January to August 2021. The country has recorded a higher amount of imports compared to the same time last year.
Crude oil lost streaks during 6 consecutive weeks but OPEC confidence could bring back a relative level of certainty to the market. Therefore, we saw crude gains since Friday. The market, however, is indecisive about the trend of oil prices. Traders are in doubt about buying or selling the commodity. We will see the final result in a couple of days. Iran-US unsuccessful negotiations can also affect the prices of the region.
Gas sharp gains were slowed down as the forecast showed a warmer winter for Europe. However, all markets are hesitant about their short and midterm outlook due to the weirdly volatile market news and events. Getting closer to Christmas and holidays also cause a passive environment but we can expect more active construction projects after the new year’s holidays.
This article was prepared by Mahnaz Golmohammadian, the Content specialist and market analyst of Infinity Galaxy.