Oil Downtrend
Singapore fuel opened lower on Monday. It decreased by about $ 10 to $ 12. Iran had a 16% fall in bitumen price, yet there was a hot competition among Iranian refineries, about 13 % – 20 % after the fall. Singapore’s price was steady on Monday and it was about $ 550. South Korea’s price was also stable. Bahrain’s bitumen price decreased by $ 20 but it does not have demand yet.
The Middle East bulk bitumen is volatile in the range of $295 – $305 and the new steel drum fluctuated in the range of $365 – $375
Crude oil price is falling lower along with most commodities. The oil price has almost been on a downtrend for 8 months. As the dollar gets stronger against other currencies and economic fears increase, the fall can continue.
The market is divided into two main groups bulls and bears. Several traders believe that the price of oil and gas can see another hike from the current level of price. They have their own reasons for Russia’s threats of new attacks and China’s comeback to the market since the covid zero is over. On the other side stays traders that believe the downtrend is not over and there are more reasons to expect a bigger fall. They have their own opinions on how the economy is cracking down and governments are facing a big issue.
Despite all the possibilities for another decrease, bitumen and petrochemical markets are receiving new demand from different regions. Customers need to receive their cargo sooner to complete their projects or former deals. As the monsoon and typhoon seasons are ending, the market can expect more.
This article was prepared by Mahnaz Golmohammadian, the Content specialist and market analyst of Infinity Galaxy.
