VG 20 bitumen
As we have mentioned before, VG 20 bitumen is one of the most
applicable bitumen viscosity grades that many countries have a high demand for it. Consequently, we have brought some pieces of news in this regard. Respectively, the unprecedented continuation of the decline in oil demand due
to the outbreak of the Coronavirus has led to negative oil prices in the United States. In other words, this means that oil sellers now have to pay customers
as well because the oil storage tanks will be full in a few days and there will
be no place to keep the oil they produce. Needful to mention that the
West Texas Intermediate oil price hit a low of $37.63 a barrel on
Monday in a historic event.VG 20 Bitumen
US oil prices have plummeted as demand has fallen and reservoirs have filled
The reason for this unprecedented decline is partly dependent on the
complexity of how oil is in world markets. In fact, we usually base oil
on projected future prices, and oil contracts that were closed for another
two weeks in May expired tomorrow, Tuesday. This means that if the
sellers want to put the oil to deliver to the reservoirs now in storage tanks,
then they have to pay the storage costs and therefore they have seen better
that by lowering the price of their oil and VG 20 bitumen, even below zero,
they will not be able to bear it. Moreover, avoid future storage costs as well as overfilling of oil tanks. Meanwhile, Brent North Sea crude, the main oil price
index in Europe and the rest of the world, fell about 9 percent to $26 a
barrel for delivery in June on Monday.VG 20 Bitumen
VG 20 bitumen and the USA intentions
Generally speaking, President Donald Trump told a daily news conference
that the government plans to buy 75 million barrels of oil to be in storage
in national strategic reservoirs to prevent further stagnation in the oil market. The oil market has faced both a historic decline in demand and a war between
two major oil giants, Saudi Arabia and Russia, since the outbreak of the Coronavirus and its globalization. Additionally, the two that we know as
OPEC Plus agreed a few days ago to reduce world daily production by 10 percent, which is one of the largest declines in the recent history of OPEC and the
global oil and VG 20 bitumen market. However, experts say that this
reduction is not enough to balance the market.
“It did not take long for us to realize that the OPEC Plus agreement did not
solve any of the market problems,” said Stephen Ines,
a strategist at AxiCorp, a global energy market expert.VG 20 Bitumen
