Weekly Bitumen Report: Oil Price Stability and its Positive Effect on Bitumen

On June 27, the first presidential debate will be held between Joe Biden and Donald Trump. This debate and their responses can have impact on the global oil prices.

Besides, on June 28, the snap presidential election of Iran will be held with 6 candidates. Its results can also significantly affect the trend of energy and the Middle East crises.

On Thursday, Reuters News Agency from Singapore reported that despite the surprising surge in the amount of crude oil inventories in America which is caused by geopolitical risks of the Middle East, there is also a prediction of a possible decrease in storage during peak demand in the third quarter of this year. As a result, on Wednesday, crude oil increased in the Asian markets.  

At the same time, Euronews investigated the underlying factors of surge in crude oil prices and listed 4 factors, respectively:

1. The more-than-expected fall in US oil inventories
2. Prediction of growth in the demands of other countries
3. Continuation of tension in the Middle East
4. Disagreement in the future outlook of global oil demand

According to these 4 factors, there is no further prediction on the fall of crude oil price.

Warren Peterson; Head of the Commodity Strategy Department at ING Institute believes that the global oil market will probably be supported due to the continuation of supply cut by OPEC+ and stronger seasonal demands in the third trimester despite short-term pressure from the strengthening of the dollar value and decreasing US crude oil storage data.

On Wednesday, Singapore’s CST180 reached 507 USD. Singapore and South Korea’s bitumen were traded at 450 and 410 USD, respectively.

Bitumen price in Bahrain fell 30 USD and reached 450 USD and the range of bitumen prices in the Europe was closed at 460-535 USD.

There is no clear estimation on bitumen price of India for July 1 due to late monsoon and global empowerment of crude oil.

On June 22, the new base price of Iran vacuum bottom was released and there was no change compared to last month. However, the congestion in Bandar Abbas and Jebel Ali, delays in vessel arrivals, and a jump in local costs have slowed the export operation in Iran.

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