Generally speaking, the global oil market can affect the Iraqi bitumen,
its market, and demands. Therefore, we have brought some key factors
regarding the Iraqi bitumen market fluctuations. As the situation in India
worsens due to the outbreak of the corona and growing concerns about
the resurgence of global oil demand, the price of this commodity has fallen
in today’s world markets. It’s needless to mention that India is the
third-largest importer of oil in the world. Moreover, Brent crude traded
down nearly 1.2 percent at about $65.33 a barrel in early trading recently. On
the other hand, West Texas Intermediate crude traded down $61.39 a barrel.
Today, Monday (April 26), India recorded the highest number of corona
disease cases for the fifth day in a row, and some European and
American countries are scheduled to send medical aid to this country. Besides, some estimates show a drop in demand for diesel and diesel fuel in April
and May in India. Japan, the world’s fourth-largest oil buyer,
is no exception; Corona-related regulations have been tightened in
Tokyo and Osaka since yesterday, covering about a quarter of the
country’s population. Members of the Organization of the Petroleum
Exporting Countries and major non-oil producers, known as OPEC Plus, met on April 1. Agreed to accumulate production May; the decision came after
the new US administration asked Saudi Arabia to reduce the
price of energy carriers for consumers.
It’s also good to know that OPEC Plus, which has seen a sharp drop in
production since the start of the Corona epidemic, is set to increase
production by 350,000 barrels per day in May and June, up from over
400,000 barrels per day in July. Roughly speaking, with the increase in vaccinations in some countries of the world and the hope of increasing
demand in the coming months, the price of a barrel of Brent oil in early
March this year had reached nearly $70; But in more than a year since
the beginning of the Kuwait epidemic in the world, the oil market has
had tough days.
As mentioned above, Brent crude rose to about $23 a barrel in April last
year (2020) as global demand declined, industrial activity closed and
borders closed. The International Monetary Fund, in its latest
World Economic Outlook report, forecasts an average oil
price of $58.52 a barrel in 2021.