Gas Crisis Flares Oil Outlook
Bitumen underwent a rally along with crude. The price increased almost in all the regions. The bulk bitumen was traded for $305 – $315 per ton and the new steel drum was $375 – $385 per ton. Singapore had a record of $400 – $410 per ton for bulk and $510 – $520 for the new steel drum.
In Europe, bitumen prices fluctuated in the range of $ -10 / +10. The average bitumen prices in South Africa were $390 per ton. In north, east, and west, the prices oscillated around $ -5 / +5. Bulk bitumen in North Africa was reported around $465 – $475. The situation was similar in China, the prices fluctuated around $ -10 / +10 in most of the regions. In North China, CFR bitumen prices were about $420 – $435 and $445 – $460 in South China.
While the crude community and the US were looking forward to the OPEC meeting on Monday, October 4, the meeting result was disappointing for the bearish side. The OPEC countries and the allies did not change the supply schedule significantly; therefore, crude continued the rally and passed through $ 80.
Considering the sharp recovery of demand, experts believe that oil prices will touch higher prices and the rally is not over yet.
The Gas crisis in Europe is getting worse. The increasing price of electricity and gas will be a trouble to the nations soon. Experts believe that the gas crisis may end up with higher demand for crude. The higher the oil price gets; the higher bitumen and other petrochemicals get. Consequently, the market of petrochemicals is waiting for much more prosperous days ahead.
This article was prepared by Mahnaz Golmohammadian, the Content specialist and market analyst of Infinity Galaxy.