Weekly Bitumen Report: Crude and Covid Resulted In a Vague Market

Oil price touched the level of $77 by Wednesday, the highest price within the last three years. It is expected to hit up to $100 as well. Meanwhile, IME increased the vacuum bottom up to $15. It is likely to rise more in the next half of the month. Based on some received reports, some Indian traders expect stability or a slight drop of rates. Since Wednesday, oil price fell, and at the time of preparing this report, it reached $73. This unstable situation, in which oil prices are fluctuating about 10% in less than a week, is like a dilemma to the global markets. It seems the new wave of the delta variant of COVID has a direct effect on the oscillations of oil price. Iranian trading companies, refineries, and OPEX are still in challenge and arguments with the shipping lines regarding the increased freights. However, the amount of the GRI increase is not clear. Accordingly, some of the shipping lines are not willing to carry goods to India and they prefer moving their boxes to Chinese ports. Currently, it appears that three factors of monsoon, delta variant of COVID, and OPEC disagreements have created conflicts in the market. Traditionally, the market is expected to start in late August or early September.