Weekly Bitumen Report: Increase oil Oil Price versus Stability of Bitumen Price

By the start of high driving season in the USA and Europe from first of June as well as the implementation of new sanctions of Europe against Russia, oil price jumped up to 123 US dollars. Infinity Galaxy had already estimated the range of oil price between 104-115 US dollars in May 2022, but the unexpected arrest of Greece tankers was a reason to see a high level for some days. In June, the range of 110-125 US dollars is expected.

The bulk bitumen of Singapore was fluctuating in a range of 575-595 US dollars. Although it seems there was no significant demand in that market, their bitumen price increased with respect to the oil price. Bahrain also experienced a fixed level of prices. Iran did not observe any serious competition in IME and the sales occurred as per the base prices. At the same time, Indian refineries decreased the bitumen price in around 37 US dollars in 1 June which was already mentioned in the previous reports of Infinity Galaxy.

Although oil price is following an upward trend, the market situation is still under the influence of preciously mentioned factors i.e. inflationary stagnation and recessions in the world.

The start of monsoon will be a more powerful factor to face the fall of demands in India.
The complicated political situation in Persian Gulf by arresting the two tankers of Greece and disappointment s with the results of JCPOA progresses were among the reasons of increase of US dollar value against Iran Rial and hence the prices of export bitumen decreased to some extent.

Although oil prices is predicted to be higher in June, comparing to May prices, it seems that other factors are overtaking oil prices and most probably bitumen price will observe a fixed or downward trend within the next week.

In the current situation, the strong suggestion of Infinity Galaxy is to follow a spot sale-purchase strategy and avoid long-term investments.
This article was prepared by Razieh Gilani, the export manager of Infinity Galaxy (www.infinitygalaxy.org).