Crude Oil Prices Plummet, Dragging Down Related Commodities
On August 13, international crude oil futures plummeted, with the settlement price for the September contract of U.S. WTI crude oil futures falling to $81.25 per barrel, a decline of $2.02 (2.4%). The October Brent contract also dropped by 2.2% to $87.07 per barrel.
The sharp decline in these major international crude oil contracts triggered a bearish market sentiment, exerting significant downward pressure on crude oil spot prices and related futures prices.
Asphalt, a direct downstream product of crude oil, is heavily influenced by crude oil prices. Although the Shanghai Futures Exchange's main asphalt contract (2706) closed at 3,671 RMB/tonne on August 13, up 20 RMB/tonne, the decline in crude oil prices will weaken cost support for asphalt.
Gasoline and diesel costs are also highly correlated with crude oil prices. The drop in international crude oil prices directly lowers the cost basis for these fuels, exerting significant downward pressure on their spot prices.