Monday, January 4, 2016

will new oil prices affect Bitumen and other products' prices soon?

The declining oil price index turned to bullish as the Asian stock markets stabilized following heavy losses in the previous session, but weak oil market fundamentals with production levels persistently above global demand kept a lid on gains.

It seems the oil products and petrochemicals and polymers will follow the change in prices as the producers suffered a lot during the market shrinking period.

Benchmark futures surged as much as 4 percent on Monday to three-week highs as relations between Saudi Arabia and Iran soured following Riyadh's execution of a prominent Shi'ite Muslim cleric. But the rally fizzled and oil prices ended down after weak Asian and U.S. manufacturing data indicated a gloomy demand outlook.

By 0428 GMT on Tuesday (11.22 p.m. ET on Monday), Brent crude LCOc1 was up 25 cents at $37.47 a barrel, while U.S. West Texas Intermediate (WTI) crude futures CLc1 were up 23 cents at $36.99 per barrel, both more than a dollar less than highs reached in the prior session.