Markets started September with noticeable price growth for fuels, bitumen, and crude oil. Canada and the US markets were closed on Monday, yet the upward trend continued.
Demand is rushing to the market and suppliers are noticing more requests in Asia, since the monsoon is getting over and halted construction projects are due to continue soon.
Euro has got to its lowest in twenty years. At the moment, Dollar is indicating a possible devaluation. If devaluation happens, crude oil can be more certain to grow back.
Considering the new flood of demand and the dollar weakness, crude oil and raw material prices can significantly increase.
The Middle East’s new steel drum is currently in the range of $ 410 – $ 420 and bulk bitumen is volatile in the range of $ 340 – $ 420. Singapore bulk prices is fluctuating in the range of $ 563 – $ 567. South Korea’s 60/80 bulk bitumen is also volatile in the range of $ 518 – $ 522.
The slight growth of crude oil on Monday was a proper incentive for the rates. OPEC also announced to be ready for a supply cut by 100,000 barrels per day in October. The committee claims that it sees an oversupply for 2022; however, the cut is not significant for an oversupply. Prior to the meeting, Russia highly resisted any cut. The country has stopped sending energy and fuels to Europe by shutting down NordStream 1 pipeline.
Iran and the US negotiations are also stalled due to objections by both parties. The pause is causing uncertainty in the Iran market but it has not interrupted the new demand rush.
This article was prepared by Mahnaz Golmohammadian, the Content specialist and market analyst of Infinity Galaxy.