Oil products soaring prices brought more positive sentiment toward the future demand outlook of petrochemicals. Bitumen, recycled oil, slack wax and other petrochemicals experienced a rise during the week. As oil continues hitting higher, bitumen and petrochemicals will be on a prosperous trend. In the Middle East, bulk bitumen was around $305 – $310 and a new steel drum was traded for $375 – $385. FOB and CFR prices increased by about $ 20 in the region.
In Singapore, Africa, and Europe prices almost hiked in all the regions. Europe and Asia are confronting a more severe energy crisis as the gas demand gets higher and prices get more. Several countries, including India, are considering releasing their strategic oil reserves to cushion the pressure of oil rising rates.
The U.S. Department of Energy (DoE) also considered releasing the Strategic Petroleum Reserve (SPR) to restrain the rapid rally of crude oil and soaring gas prices. The latest news shows that the administration might change their mind as they are taking the natural crisis, such as Hurricane Ida into account.
The OPEC+ did not consent to raise the supply rate more than what they agreed upon in the last meetings. The members look a bit worried about the demand and supply in the future. They know that any change of supply can impose a huge effect on the current market and the price; therefore, they try to act cautiously.
The winter is coming and the gas high prices are making the government and people worried about the gas rising demand. Some believe that fossil fuels and energy are getting too much expensive and the world needs to find clean energy to replace gas. Accordingly, Russia promised more gas supply and gas prices decreased about 10%.
This article was prepared by Mahnaz Golmohammadian, the Content specialist and market analyst of Infinity Galaxy.