Weekly Bitumen Report: Support of Bitumen Price Continues

In the second round of Iran’s presidential election, Masoud Pezeshkian was appointed as the president of Iran. Considering his political views and economic programs, it seems that the approach of Iran’s new government is negotiation to reduce the tension. His swearing-in ceremony will be held on 30^th July.

In America, there has been a wave of new pressure on US President, Joe Biden, to step aside as the Democratic candidate and it seems that this pressure has changed the situation in favor of the Republicans and specifically, Donald Trump.

In France, the far-right wing party did not win the majority of seats and failed to take power once again. After a long time, the UK Labor Party sweeps to power.

The 75th NATO summit was held simultaneously with the US concerns about the meetings of the leaders of India and Hungary with Putin, indicating a clearer division between the Eastern and Western blocs.

During the last week, the average of crude oil prices increased in the world due to the geopolitical effects.

According to oil market analysts, the price of Brent crude oil got stronger due to doubts about OPEC members’ disagreements in market supply, the rise of political developments in the Middle East, and the reduction in oil merchant reserves as a result of high demand in the peak of the summer traveling season. In the meantime, the rise in crude oil purchases by companies like Trafigura and Gunvor led to the direct impact on the increase of crude oil prices in the future markets. According to the analysis of Standard Chartered, it appears that the market has not comprehended the actual shortage of crude oil considering the increase of seasonal demand and OPEC adjustment policies.

However, on Wednesday, crude oil had a small reduction by the disappearance of the impact of Hurricane Beryl in oil installations of Texas and inflationary data that weakened oil demand in China.

On July 11, the price of Brent crude oil remained in the range of 85 USD. Singapore’s CST180 reached 515 USD.

Bitumen price in Singapore rose 1 USD and reached 466 USD, however, in South Korea, the bitumen price fell 5 USD and closed at 400 USD.

In Bahrain, the previous stable trend is going on at 450 USD and bitumen prices in Europe remained in the range of 499-560 USD.

India might experience a slight surge in bitumen price on July 15. Due to the reduced import rate of India during the past months, it seems that the Indian market has improved a little.

In the Middle East, by the start of a severe wave of heat in the Persian Gulf and Iran, vessel departures and port operations are going on more slowly. It is also heard that marine transportation costs are about to increase in most of the destinations, which will affect the finished price of bitumen too. In the meanwhile, considering the value reduction of the US dollar against Iran Rial, Iran FOB bitumen price has risen and this uptrend is expected to continue with the global support on oil prices and the increase of bitumen prices in different regions.

To receive the latest bitumen prices of the various destination ports, please refer to https://infinitygalaxy.org/bitumen-price-today/.

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