Weekly Bitumen Report: The Tough Options in front of the Economy

Infinity Galaxy team was planning to release its first videocast in the first week of July, which was prepared on 5 July, but the strong earthquake of oil price changed the whole prepared scenario.

The first 7 days of July passed with a drop of more than 10% in oil price.

During the last week, various political news affected the whole events of the world, the events like:

• Inflation rate of 80% in Turkey which was an unprecedented rate during the last 24 years
• The rumors of selling oil from Iran and Russia at a cheaper rate to China
• The fear of the outbreak of a new wave of Corona in the world
• Boris Johnson’s resignation in the UK
• The warning of Central Bank of UK about a worse economic vision in the world

The unparalleled surge of electricity and gas prices in Britain, the inflation of 9.1% after 40 years in this country, and the possibility of facing a two-digit rate of inflation in the USA and Europe are causing more fear in the economies.

However, after passing 134 days of the Russia- Ukraine war, it seems this war is no longer the main concern of the world and the economic pressure caused by this war is the top issue.

Till Monday, 4 July, and while there was a resistance of crude oil prices at the level of 105 US dollars, crude oil prices suddenly fell by around 7.47% and stayed at the level of almost 103 US dollars.

Even on Wednesday, it decreased up to 99 US dollars, in a way that even Bloomberg News published a piece of news about fall of oil price up to 65 US dollars, while 4 days ago they had announced the increase of oil price up to 380 US dollars based on JP Morgan analysis.

This fear froze the deals of oil products and the market players are tracking the events of the market.

Bitumen price in India that formerly faced a fall of 78 US dollars in June and July is worried about another fall on 15 July and the bitumen prices of Singapore and Bahrain.

In Iran, a fall of 6.5% in vacuum bottom prices is predicted too. It seems that the world economies have no option but to choose between hyperinflation or recession and most probably, some of the economies find recession as a better solution, compared to hyperinflation.

In such a situation, the market players are advised to wait and track the market trends and changes.

Like the last 2 months, Infinity Galaxy’s recommendation is to trade only based on the received inquiries considering the fluctuated changes in the market.

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