Weekly Bitumen Report: US Economic Data Helps Oil Prices

On June 12, Hezbollah of Lebanon launched its largest missile attack on Israel, and at the same time, Israeli fighters responded to this attack. However, with the freedom of 4 Israeli hostages, America attempted more of a ceasefire. All these movements happened after the death of a high-ranking commander of Hezbollah by Israel.

In the meantime, upon the approval of America and the West to Ukraine to use their weapons in attacks on Russia, Ukraine has targeted missile launch sites inside Russia. Besides, Russia invaded two new villages in their latest attacks.

Simultaneously, 4 Russian warships entered Cuba to project their power to the West. This action is seen as Russia’s attempt to demonstrate power during tensions with the West over Ukraine.

On June 13, a commercial ship was damaged by a Houthi attack to enhance the level of current tension in the region.

On Wednesday, there was a significant growth in oil prices and, once again, it reached 80 USD due to the release of the US May inflation data, which was lower than expected, and a simultaneous decrease in the dollar index. The analysts believe that such growth might be related to the increase in demand in summer due to more trips during this season.

Besides, the experts believe that given the likelihood of higher interest rates due to excessive inflation, it is possible to observe a short-term surge in oil prices. However, a clearer direction of oil prices can be determined by releasing China’s macro-inflation data.

On Wednesday, OilPrice published a report by Standard Charter stating that “Oil Markets Will Soon Face Significant Supply Deficits”. Hence, it seems that it is improbable to forecast crude oil trends with certainty.

On June 12, Singapore CST180 reached 504 USD. Bitumen prices in Singapore and South Korea closed at 430 and 395 USD, respectively.

The bitumen price of Bahrain is still stable at the range of 480 USD, which is observed at 430-500 USD in the green continent.

India appears to record another fall by the end of this week in its bitumen price.

In Iran, bitumen prices got involved with some changes in pricing methods. Considering the increase in the local transportation costs, changes in vacuum bottom purchase, and more complications in the export processes, Iran’s bitumen price is likely to increase, however, it is under the pressure of buyers for lower prices.

Considering the new changes in bitumen pricing in Iran, the Infinity Galaxy team stays with you as a reliable source of supply, maintaining high quality and competitive prices.

This article was prepared by Razieh Gilani, the export manager of Infinity Galaxy.