DUBAI, Arab Emirates, January 18, 2022 (Newswire.com) - The bitumen price in the Middle East fluctuated 47% in 2021, ranging between $330 and $485 with an average price of $372. Bitumen prices fluctuated due to factors including Oil price, changing shipping rates, Covid-19 and Political tensions. The Bitumen supplier, Infinity Galaxy, clarifies effective factors on the bitumen market in 2021.
Compared to the beginning of 2021, the highest Brent crude oil price recorded this year has grown by 66%.
Below is the average monthly Brent Crude oil price in 2021. This increase was unprecedented during the last 5 years.
Average Monthly Price of Oil in 2021
- January: $54.77
- February: $62.28
- March: $65.41
- April: $64.81
- May: $68.53
- June: $73.16
- July: $75.17
- August: $70.75
- September: $74.49
- October: $83.54
- November: $81.54
- December: $73.99
Due to the Infinity Galaxy report on the Chaotic bitumen market, freights tripled in 2021.
An increase in freights had a direct impact on final bitumen prices and increased them. This also caused delays in shipments.
Covid-19 and Vaccination progress
Globally, the Omicron and Delta corona waves passed in 2021.
The Delta wave began in India and caused 6,000 deaths per day. In the 3 months leading up to the start of vaccination, when the demand for oil declined due to the Delta, the oil price decreased. Following this oil price reduction, bitumen price in India decreased too.
The Omicron came from South Africa at the end of November 2021, which has reduced oil prices by 10% compared to recent months. Due to Omicron's high spread, oil prices fell from $86 to $69 in 10 days.
The lack of manpower caused by Covid reduced bitumen production. Because of the bitumen feedstock shortage, the high demand in the market, and the fierce competition between refineries for feedstock, bitumen prices soared.
Political tensions in oil and bitumen producing countries have always affected the prices. Political tensions were high in the Middle East in 2021. As a result, oil and bitumen prices fluctuate a lot.
Average Monthly Bitumen Price FOB Jebel Ali in Drums, 2021 (+/- 5 USD)
- January: $345
- February: $340
- March: $350
- April: $355
- May: $395
- June: $355
- July: $355
- August: $350
- September: $355
- October: $415
- November: $460
- December: $400
Visit Infinity Galaxy's Bitumen Price page to see the current bitumen price.
Bitumen Market 2022 Perspective
Most technical analyzes globally predict 2022 as a year of balanced growth in supply and demand and rising bitumen prices, with fewer fluctuations than 2020 and 2021. Many of these predictions depend on the parameters mentioned above. If any negative change occurs in these parameters, these predictions may fail.
Read Infinity Galaxy's weekly reports of bitumen market trends on www.infinitygalaxy.org, or get information at email@example.com.
Source: Infinity Galaxy