Weekly Bitumen Report: Recession Fear in China by More Tension in the Middle East

In a tele-conversation between Joe Biden and Benjamin Netanyahu, Biden stressed the urgency of immediate ceasefire in Gaza and agreements on hostage release. At the same time, at least 50 people were killed in Gaza in another airstrike of Israel and severe fire exchanged happened between Israel and Hezbollah.

In the meantime, the authorities of UK and Greece declared that a Greek oil tanker went on fire by several attacks in the Red Sea. None of the parties have claimed the responsibility for these attacks but they have been attributed to the Houthis.

In the newest polling of US, Kamala Harris beating Donald Trump by 3%.

During the last week, oil price decreased in Asian markets and then in other markets from the early hours of Monday, August 19. The main reason was the fear of demand reduction in China as the main oil importer of the world. However, the capitalists chase the peace talks of the Middle East carefully. 

The analysts of Goldman Sachs Bank announced that “the reduction of oil demand in China and the risk of fall in their GDP are pushing our forecast for Brent crude oil prices in 2025 downward, towards a range of $75 to $90”.

The new data suggest that with a decline in the prices of newly-built buildings with the fastest rate in the last 9 years, along with the fall of industrial production and raise of unemployment in China, the economic growth of the country reduced in June.

In the last month, Chinese refineries significantly reduced the level of crude oil refining in response to the drop in fuel demand. 

However, considering the international political crises and fear of economic recession in China, there cannot be any clear movement for the oil price in the medium term.

On Thursday, Brend crude oil touched 76 USD. at the same time, Singapore’s 180CST reached 441 USD.

Bitumen price in Singapore and South Korea closed at 480 and 400 USD, respectively.

In Bahrain, bitumen was traded at 420 USD and the range of European market was observed at 430-505 USD.

On August 15, bitumen price in India experienced an insignificant surge of around 0.5 USD and remained almost stable in its previous range.

In Iran, bitumen prices are still in the same range, however, the fear of global recession on one hand, and severe congestion in Bandar Abbas and Jebel Ali made the export situation more complicated.

To check the latest bitumen prices, visit https://infinitygalaxy.org/bitumen-price-today/.

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