Constant Price Volatility
Last week, petroleum products’ markets were indecisive along with crude oil. Accordingly, bitumen market participants were uncertain about prices due to the volatilities. Bitumen fluctuated in the range of + $ 5 / – $ 5 during the last week. The bulk bitumen is currently in the range of $ 390 – $ 400 and the new steel drum is about $ 455 – $ 465.
Meanwhile, Singapore prices slightly grew back compared to the former weeks. Currently, Singapore bulk grade 60/70 is volatile in the range of $ 555 – $ 585. In Europe, CFR Antwerpen, Belgium, is about $ 527 with fluctuations about – $ 5 / + $ 5.
The covid situation in China is still unsteady. While the country is reopening Shanghai, reports show a new resurge of the virus in several other cities. Undoubtedly, the spread of the virus affects economic growth and industrial activities in addition to the oil demand. Yet, the reports claim that China’s demand for bitumen, oil, and petroleum products will be high at the end of 2022.
Fuel price is nearly levelling off in most of the regions but threats of sharp growth are still available. IN Singapore and parts of Asia, Fuel prices experience a slight decrease. The reduction has affected prices in the Middle East as well. As a result, bitumen prices in the Middle East had a tiny decrease.
Traders are lingering between waiting or making new deals. The prices are just moving unexpectedly and are mostly contrary to the common notion of traders. For instance, India is possibly about to reduce prices by $ 20 while it had increased the rate by $ 3 last week.
This article was prepared by Mahnaz Golmohammadian, the Content specialist and market analyst of Infinity Galaxy.
