With a moderate decrease during the second week of May, the new steel drum is currently fluctuating in the range of $ 460 – $ 470 in the Middle East. Bulk bitumen is also volatile in the range of $ 400 – $ 410. In Singapore, bulk bitumen is in the range of $ 540 – $ 560 and we might see a moderate decrease in the coming week. In Europe, prices were also fluctuating by – $ 10 / + $ 10, CFR Belgium, Antwerpen is currently fluctuating in the range of $ 520 – $ 530.
The situation with the Russian war in Ukraine and inflation is still putting pressure on the markets and governments. Food commodities are surging higher every week. Fuel prices are volatile in various regions. In the US and Europe, fuel and energy prices are getting to the highest range in recent years. However, in the Middle East and Singapore, fuel prices decreased slightly which affected the bitumen price in the region.
The oil demand outlook seems to be changing compared to the first weeks of the year. OPEC and IEA have declared that they expect lower demand by the end of 2022 while their forecasts supported stronger demand for the year. Experts believe that the inflation effects have resulted in lower purchase power; therefore, demand for oil and petroleum products can be affected. Demand weakness can neutralize supply disruptions. Yet, the market has not reacted to the new forecasts about demand.
Market participants and traders are still looking for the cheapest prices that they can find in the market. They prefer to have their required bitumen and oil products at the best price to avoid any project cancellation.
This article was prepared by Mahnaz Golmohammadian, the Content specialist and market analyst of Infinity Galaxy.