Tensions in markets were still troubling traders during the week. Commodities and petroleum products volatility is not over and it is difficult to plan long term strategies. Market participants prefer to have spot purchase strategies to avoid losses. Bitumen prices were fluctuating in the range of + $ 10 / – $ 10 in most regions.
In the Middle East, bulk bitumen was volatile in the range of $ 380 – $ 390 and the new steel drum was fluctuating in the range of $ 450 – $ 460. In Europe, prices are more volatile as the war in Ukraine continues. CFR Antwerpen, Belgium, was about $ 507 – $ 520 in the first week of June. China’s demand is also recovering since the lockdowns are thoroughly over. Ports are gradually getting back on track and vessel congestion is decreasing.
Commodities prices are growing every week and it is frightening the economies and market participants. Oil prices grew higher for several consecutive weeks and it is getting closer to their historical price peak of 2008. The uptrend seems to continue during the week as well.
Iran and the US negotiations are less likely to end up with an agreement. The dollar is empowering against Rial due to lower hopes for lifting the sanctions. Bitumen prices in the region will be affected by the increase.
Raw material shortage and a lower rate of production have also troubled other petroleum products. Most refineries have shifted to fuel production to make up for the losses of the pandemic. Products such as recycled oil and base oil and lubricants are less interesting for the producers; therefore, the market is facing a tight supply in their markets.
This article was prepared by Mahnaz Golmohammadian, the Content specialist and market analyst of Infinity Galaxy.