Bitumen Price History
Bitumen price history has always been affected by oil price changes and fluctuations. Therefore, analysts generally pay attention to the oil prices, from them, they will come up with some results about bitumen prices and their probable changes in the future. So, we start with some items about oil and its influence on the bitumen price history.
What were the highest and lowest oil prices in history?
In 2003, the price of Brent crude fell to $27.67 a barrel at one point, its lowest level, while US crude fell as low as $28.36.
On the other hand, the total peak occurred in June 2008 with the highest crude oil price of $148.93 per barrel. It was one of the sharpest drops in history. Needless to mention that all these rises and falls in the oil prices, impacted largely on the bitumen prices of those times.
What was the reason for the fall in the oil price?
3 OPEC was the major cause of low price oil, as it refused to cut oil production, leading to the fluctuations in prices. In the Spring of 2020, oil prices dropped among the COVID-19 pandemic and economic slowdown. OPEC and its associates agreed to historic production cuts to stabilize prices, but they collapsed to 20-year lows. Oil is a type of product that tends to have larger changes in price than more stable investments such as stocks. There are several influences on oil prices, a few of which we will mention here.
What are the influences on oil and bitumen prices?
Oil prices are influenced by some items but are particularly dependent on the decisions about the product made by OPEC, the Organization of Petroleum Exporting Countries.
Similar to other products, the volume of supply and demand affect prices; a combination of stable demand and oversupply has tensed oil prices over recent years.
Natural disasters that could potentially prevent production, and political tension in oil-producing countries all impact pricing.
What are the WTI oil price and its effect on the bitumen price history?
West Texas Intermediate (WTI) can refer to a grade or a mix of crude oil, and the future price for that oil, generally WTI usually refers to the price of the New York Mercantile Exchange (NYMEX) WTI Crude Oil futures deals or the deal itself.
How do the oil prices change in 2020 and the future?
Oil prices will be about $23/b in the second quarter of 2020 but increase to $30/b in the second half of the year. The average will be $33/b barrel for 2020, down from $64/b in 2019. Prices will increase by about $46/b in 2021. Oil and bitumen demand has fallen since the attack of the coronavirus contagion.