Intensified geopolitical tension between Europe and Russia, along with falling stock inventories for crude oil in North America, has led to volatility in crude oil prices this week. Resultantly, the prices of Toluene, which is one of the most traded aromatic, has gained moment in Indian and International markets. In India, strong cyclical demand for the solvent has lead to expectation that prices may gain momentum in the future.
On 23rd July, 2014, Brent Crude prices peaked at $108.03 per barrel and WTI reached $103.12 per barrel for the week, before declining to $107.07 and $102.07 per barrel , respectively, on the consecutive day.
The MH17 flight incident in Ukraine has threatened to intensify crisis between the West and Russia. On these lines, European Union is set to consider restricting Russia's access to capital markets and sensitive technologies, according to international news publications. In addition to this geopolitical tension, the supplies of crude oil at Oklahoma, also fell by 1.4 million barrels last week, according to the American Petroleum Institute, which to lead to hike in WTI prices this week.
Adding on this a prominent importer in India told the website, "The latest geopolitical tension between Russia and and Europe has yet again led to fear factor purchasing of Toluene, as there is a speculation that Crude Oil prices will be very volatile in the near future". Evidently, the benchmark price of Toluene in South Korea has increased from level of $1,165 per metric tonne FOB South Korea on 16th July,2014 to highs of $ 1,203 pr metric tonne FOB South Korea on 23rd July, 2014, according to Indianpetrochem price database.
The website gathers, during June, 2014 the average incoming cost (shipment from overseas) of Toluene onto Indian ports was Rs. 74-75 per kg, however, these prices have now touched levels of Rs. 78-79 per kg, sources say. At present, the bulk price of Toluene at Mumbai and Kandla is Rs. 78-79 per kg, with strong cyclical demand from paint industry.
A prominent importer informed the website, "The demand from paint industries has gained paced this week, almost 4,000-5,000 metric tonne of Toluene has been sold from Kandla port itself and at present there are only 7,000-8,000 metric tonne of stocks at Kandla ".
Most traders expect the prices to easily touch to levels of Rs. 81-82 per kg, on account of rising domestic demand and international benchmark prices.
(This article was published on the website on July 25, 2014)
On 23rd July, 2014, Brent Crude prices peaked at $108.03 per barrel and WTI reached $103.12 per barrel for the week, before declining to $107.07 and $102.07 per barrel , respectively, on the consecutive day.
The MH17 flight incident in Ukraine has threatened to intensify crisis between the West and Russia. On these lines, European Union is set to consider restricting Russia's access to capital markets and sensitive technologies, according to international news publications. In addition to this geopolitical tension, the supplies of crude oil at Oklahoma, also fell by 1.4 million barrels last week, according to the American Petroleum Institute, which to lead to hike in WTI prices this week.
Adding on this a prominent importer in India told the website, "The latest geopolitical tension between Russia and and Europe has yet again led to fear factor purchasing of Toluene, as there is a speculation that Crude Oil prices will be very volatile in the near future". Evidently, the benchmark price of Toluene in South Korea has increased from level of $1,165 per metric tonne FOB South Korea on 16th July,2014 to highs of $ 1,203 pr metric tonne FOB South Korea on 23rd July, 2014, according to Indianpetrochem price database.
The website gathers, during June, 2014 the average incoming cost (shipment from overseas) of Toluene onto Indian ports was Rs. 74-75 per kg, however, these prices have now touched levels of Rs. 78-79 per kg, sources say. At present, the bulk price of Toluene at Mumbai and Kandla is Rs. 78-79 per kg, with strong cyclical demand from paint industry.
A prominent importer informed the website, "The demand from paint industries has gained paced this week, almost 4,000-5,000 metric tonne of Toluene has been sold from Kandla port itself and at present there are only 7,000-8,000 metric tonne of stocks at Kandla ".
Most traders expect the prices to easily touch to levels of Rs. 81-82 per kg, on account of rising domestic demand and international benchmark prices.
(This article was published on the website on July 25, 2014)
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