Weekly Bitumen Report: The Slow Trend of the Market after the Passing Stormy Weeks

During the last week, crude oil experienced frequent fluctuations. With the attacks of the al-Houthi movement of Yemen to oil processing facilities of Saudi Arabia and threatening that there is no guarantee on the security of world energy, crude oil rates increased up to 125 US dollars but by the outbreak of a new variant of Corona in China, it fell up to 107 US dollars till the time of preparing this report. 

On the 37th day of the martial attack of Russia on Ukraine, the war damages have been estimated at around 565 billion US dollars, and still, the war is going on to conquer Kyiv. As a result of this war, the crude oil price fluctuates in a range of 100-130 US dollars, and all of the financial and raw material markets are facing severe changes by these fluctuations.

While Iran nuclear talks are in a shadow of ambiguity to obtain a clear result, the equity of the US dollar against the Iran Rial increased from Tuesday due to the possibility of a lack of agreement between the two parties. Besides, it is expected that Iran might increase the prices of vacuum bottoms up to 25-30 US dollars within the next week.

For the second consecutive week, there was not any strong demand from India by approaching the end of their financial year and it seems that Indian refineries aim to keep the bitumen rates at the current level or adjust a slight increase of 4-5 US dollars from 1 April 2022.

However, although the official New Year holiday has finished in Iran on 26 March, the private sectors start their work from 3 April.

The gap between fuel and bitumen prices in Singapore (120 US dollars) is still significant, and like the last two weeks, it seems that the market situation is not in a stable mode for long-term investment.

However, it seems we need to wait till 4 April to find a more accurate assessment of the market situation, by the end of the Iran New Year holiday and new announcement of the bitumen rates by the Indians refineries.

This article was prepared by Razieh Gilani, the sales manager of Infinity Galaxy (www.infinitygalaxy.org).