Keeping you up-to-date on the American asphalt oil market as it relates to the roadway construction industry.

Liquid asphalt has many factors that play into availability and price trends. Asphalt binder sees significant price and volume stock swings due to the seasonable nature of roadway work. It is subject to refinery and terminal economics. Asphalt is considered a secondary commodity as it is produced through refining crude oil (primary commodity). Refiners don’t always create asphalt in the refining process. Economics can drive refiners towards sending heavy ends to cokers or selling the asphalt as a fuel oil blendstock.

Due to supply/demand uncertainty and the constant changes in the oil market, asphalt prices move in an unsophisticated manner. Currently, there is no financial instrument that allows contractors and suppliers to effectively manage their risk exposure to this commodity. Asphalt Oil Market serves to establish a nationwide price trend for liquid asphalt.

Once we can measure it, there is a higher likelihood that we’ll be able to manage it.