Previously, the international crude oil market has been double positive and turned to rise; most of the energy products follow the upward trend, and the asphalt market is in the off-season with limited growth. According to the price monitoring data of SunSirs, the price of asphalt was 3,160 RMB/ ton on March 8, and it only increased by 0.56% in the past three days.
The results of the OPEC+ meeting finally came to fruition, and the organization agreed to extend the oil production reduction to April. Saudi Arabia, OPEC leader, said it would extend the plan of voluntarily reducing production by 1 million Barrels/ day and decide when to phase out the reduction in the next few months. In addition, Russia and Kazakhstan were allowed to increase production by 130,000 Barrels/ day and 20,000 Barrels/ day respectively. The results of the meeting exceeded market expectations and pushed the oil price up to the highest level in more than a year. At the same time, on the evening of March 7, Yemeni Husser forces launched eight ballistic missiles and 14 UAVs into Riyadh, the capital of Saudi Arabia, and several areas in the East and south to launch attacks on oil and military facilities in Saudi Arabia. The international crude oil market was stimulated by double positive factors, and the international oil price soared. In the past three days, the price of WTI and Brent crude oil soared by more than 10%.
Recently, the international crude oil price has been rising all the way, and the cost side has increased the domestic asphalt price. However, the domestic demand for asphalt is in the off-season, coupled with the obvious cooling weather in northern China recently, the demand for asphalt remains low. The southern region has also maintained its rigid demand. After the Spring festival, the asphalt operation rate remains at a low level, and the asphalt operation rate in Shandong is about 30%. At present, the supply and demand of asphalt market is weak, and the upward energy is weak.
SunSirs analysts believe that after the sharp rise of international crude oil price, it will digest the favorable market, and the international oil price may recover. Moreover, China domestic asphalt market demand has not yet recovered. It is expected that China domestic asphalt price will recover steadily.
