Weekly Bitumen Report: Bitumen Price Stability in Other Regions, Rise in Iran and India

According to Reuters, the U.S. Federal Reserve increased the interest rate up to 0.25%. Such a surge can lead to the strengthening of the dollar and a decrease in oil demand. In the meantime, OPEC+ agreed to reduce oil production by up to 1.16 million bpd to maintain the balance of the oil market.

At the same time, according to the Wall Street Journal, America implemented new tariffs against imported goods from China that could escalate the commercial war and reduce global economic growth.

Besides, Donald Trump – the president-elect of the U.S.- stated that all the Israeli captives should be released before January 20th, which is his inauguration time, otherwise, there will be ‘hell to pay’ in the Middle East.

On the other side of the world, Russia intensified its attacks on the infrastructures of Ukraine that can affect disruption in energy supply to Europe and rise in oil and gas prices.

There have been several political crises in France, Syria, and South Korea that can have side effects on the markets in the long term.

On December 5, the crude oil price was around $72. Singapore’s 180CST closed at $449. Bitumen prices in Singapore and South Korea were reported at $431 and $415, respectively.

 Bitumen price in Bahrain has been stable at $395 for more than 3 months. The range of bitumen prices in Europe was observed at $415-450.

While it was expected to see a marginal rise in India bitumen prices on December 1, Indian refineries increased bitumen prices by around $13.

In Iran, the ongoing shortage of raw materials has led to a continued upward trend in prices. Over the past week, there has been more than 44% competition among bitumen producers for the purchase of vacuum bottom, and pressures on bitumen exports from Iran have increased more than before. The rise in bitumen prices in Iran occurs at a time when Brent crude oil prices are in the range of $70 to $75, and bitumen prices in various parts of the world are relatively stable. However, this increase has resulted in positive changes in destinations that rely solely on Iranian bitumen for their supply.

To check the latest bitumen prices at different destinations, check Infinity Galaxy website: https://infinitygalaxy.org/bitumen-price-today/.
This article was prepared by Razieh Gilani, the export manager of Infinity Galaxy.