Weekly Bitumen Report: U.S Short-term Policies and Iraq Oil Production Affecting Market

Donald Trump confirmed that “a very big agreement” will be signed between the US and Ukraine with Zelenskyy in the White House on February 28. He also pointed out that America plans to reclaim its money from the Russia and Ukraine war.
He also mentioned in the U.S. Cabinet meeting that the 25% tariff on European goods will be implemented shortly and that Ukraine’s security against Russia will be on Europe’s account, not America’s.
Besides, Emmanuel Macron was the first leader from The European Union (EU) who met with Trump in Washington. After this meeting, he announced that Trump changed the game with his presidency and Europe must take on the responsibility of guaranteeing Ukraine’s security.
In the Middle East, the captive swap between Israel and Hamas is going on and both parties accuse each other of breaching the agreements. Furthermore, Israel carried out an airstrike on Syria within the last week.
On Monday, February 24, oil prices dropped due to efforts to resume oil exports from the Kurdish region of Iraq to Turkey, which raised fears of an oversupply. Iraq also announced that they are ready to transfer 185K barrels of oil daily via pipeline to Turkey.
Besides, the investors are waiting for clarifications on the peace status between Russia and Ukraine.
SS WealthStreet research center believes that the spiral of falling crude oil prices is due to Trump’s pressure on Iraq to resume its oil exports, which could improve supply flows in global markets after nearly two years. However, in the short term, oil prices will be most affected by geopolitical developments and U.S. policy.
On Thursday, crude oil prices improved somehow and reached $72.24.
Singapore’s 180CST dropped to $473. The bitumen price in Singapore and South Korea remained unchanged at $449 and $425, respectively.
In Bahrain, the bitumen prices is still fixed at $420. The range of bitumen prices in Europe was traded at $440-470.
Bitumen price in India has no clear trend for March 1, but it is expected to see some price falls. However, the import demand is quite high in the market.
The price of bitumen in Iran has increased over the past week as the end of the year approaches, due to the widening gap between the free-market dollar rate and the banking system, as well as competition among bitumen producers for raw materials. It seems that for now, its upward trend will continue with a mild slope.
On the other hand, the exporters attempt to send their orders before the start of the New Year in Iran, as a result, there are some port congestions at the origin.
To check the latest bitumen prices at different destinations, check the Infinity Galaxy website: https://infinitygalaxy.org/bitumen-price-today/.
This article was prepared by Razieh Gilani, the export manager of Infinity Galaxy.