Tighter Supply Probability
Tighter supply and demand increasing projections drove crude oil prices to 88 but it didn’t last long. Bitumen prices also followed the crude and increased significantly in many regions. The crude oil price is now stalling in the range of 75 – 85 dollars. The movements are weak and no one can surely predict the directions.
Bitumen demand is flowing in the market despite all volatilities. Construction projects are going on in Africa, and Asia and traders are trying to catch up to the demand.
China is also increasing the orders of bitumen and petroleum products as it is removing more covid restrictions. The world is getting very optimistic about China’s demand for fuel, oil and subsidiary products for 2023.
The market may expect more tightening in supply since OPEC is likely to decrease production furthermore.
In the Middle East, the new steel drum bitumen is in the range of $ 420 – $ 425 and the bulk bitumen is in the range of $ 360 – $ 365. The bulk of Singapore is volatile in the range of $ 470 – $ 480 and South Korea is currently $ 430 – $ 440.
This article was prepared by Mahnaz Golmohammadian, the account manager and market analyst of Infinity Galaxy.