Market turmoil after crude oil prices fell 3.75% last week
On the 274th day of Russia’s war against Ukraine, Russia’s massive offenses left most of Ukraine without electricity and millions of Ukrainians without water or heating. However, severe sanctions against Russia caused Russian oil exports to Europe to drop to almost zero in November. On the other hand, the G7 countries intend to reduce the price of Russian oil through embargoes on transportation and insurance and to put pressure on countries that buy Russian oil.
China has recorded the highest number of new cases since the start of the pandemic, although the government is manipulating the strictest restrictions to contain the spread of the disease. On Wednesday, 31,527 new cases of the disease were detected, 28,000 more than the previous record in April, forcing China’s largest city, Shanghai, to completely lock down and halt economic activity. The zero Covid policy not only stopped the spread of the virus but also caused serious economic consequences.
As a result, Crude oil fell 3.75% to nearly $84 on Wednesday on fears of a new coronavirus outbreak.
On the other hand, according to new reports from Goldman Sachs, it appears that OPEC’s recent decision to cut 2 million barrels was not political and was based on oil data. Contrary to the previous statement, OPEC may announce another reduction in production.
On November 23, market confusion was great, so the fuel price in Singapore increased by USD 8, while the USD 5 drop in the price of bulk bitumen in Singapore and South Korea respectively showed a record 535 and 430 USD.
It’s also worth noting that Bahrain bulk bitumen is still trading at USD 425.
In Iran, from October 20 to November 20, the average competition of refineries for the vacuum bottom was about 64%, and on November 22, the base price of the vacuum bottom increased by about 8.3%, and the price of the highest and lowest prices of Iranian bulk bitumen came out at 40 USD.
As mentioned above, the combination of inflation, the coronavirus outbreak, and uncertainty about the economic outlook has caused exports to fall short of the range of previous years, and any new contracts should be very cautious.
This article was prepared by Shirin Yousefi, the Content specialist and market analyst of Infinity Galaxy.