Weekly Bitumen Report: Hot Middle East, Static Market

During the last week, intense Israeli attacks on Gaza have continued, and widespread international condemnation continued. At the same time, Donald Trump, who recently postponed many of the announced tariffs on China, in a new decision and in a phone call with the President of the European Commission, announced an extension of the suspension of trade tariffs with the European Union until June 9. The European Union also expressed hope that a comprehensive agreement with the U.S. can be reached during this period. Although markets have not yet reacted positively, this signal of lower tension could moderate inflationary pressures on imported goods in the midterm. Simultaneously, a near-term agreement between the U.S. and Iran is approaching, which could impact global energy prices.

Trump also issued a new order stating that if Russia and Ukraine do not reach peace, he may impose tariffs of up to 500% on countries purchasing Russian oil to disable the Russian economy.

Meanwhile, during OPEC+’s 191st meeting, the members emphasized following the previous agreement for a gradual production increase starting in June. Despite concerns over declining global demand due to China’s economic recession, OPEC has not changed its production policy yet. The organization also announced that in case of unexpected fluctuations, an emergency meeting would be held.

Over the past week, Brent crude prices remained almost unchanged, staying around $65. On Thursday, Singapore’s 180CST reached $431. The bitumen prices in Singapore and South Korea were traded at $390 and $400, respectively.

Bahrain’s bitumen remains stable at $370, while European export bitumen prices slightly rose back above $400, in a range of between $400-450.

In India, bulk bitumen prices are expected to slightly decrease by early June due to the early onset of the monsoon, but drum bitumen prices are likely to remain stable or slightly increase due to high demand.

In Iran, with a slight increase in the base price of vacuum bottom, along with transport strikes and news of U.S.-Iran agreements, exporters are under significant pressure. In addition to delays in deliveries and commitments, prices are at a fragile point that may lead to a much larger potential increase. However, Iran’s export market is awaiting new updates and signals to adjust to the evolving political and international situation.

You can check the Bitumen Price page on the Infinity Galaxy website to see prices in different regions: https://infinitygalaxy.org/bitumen-price-today/.

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