The week had a steady market at the end of August. Prices were almost stable at the former prices with +5 / -5 US dollars volatility in several regions. In the Middle East, the prices were at the same range of about $270 – $280 per barrel and $340 – $355 for the new steel drum bitumen.
The burden of the new variants of covid was paralyzing the market due to the dim demand outlook that some market participants had in mind. Fortunately, the page turned after Pfizer declared that it got the approval of the FDA. The news brought back hope to crude oil markets, commodities, fuels, and petrochemicals. The major financial institutions were also consistent in their high demand market for 2021. Consequently, Brent crude could quickly recover to $72, and WTI touched $69 at the time of writing this article. The market sentiment hopes for better prices in the upcoming weeks.
Freights did not undergo any significant changes during the week; however, the situation is still unfavourable for traders and shipping companies. The congestion is not solved yet and the delays are making trouble for the traders that promised a specific arrival. GRI also increased during the last week of August.
Trustworthy suppliers still recommend “Spot Purchase” at the current condition as the market prices are volatile and the rising possibility is stronger than any fall. Road Constructors have stuck to the former plans as well.
Fuels demand and air travel also came back to the improving trend of theirs. The jet fuel demand outlook is promising for the industry as people mobility is getting more once again.
This article was prepared by Mahnaz Golmohammadian, the Content specialist and market analyst of Infinity Galaxy.