Weekly Bitumen Report: Snapback Negotiations on Top, India Gets Russia’s Oil Victim

The Political and Economic Developments of the Week

Everyone Waiting for Europe Decision, Misarrangement in the Markets by Trump Tariffs

During the last week, the world was mainly focused on the negotiations between Iran and Europe regarding the activation of Snapback Mechanism and possibility of return of UN sanctions against Iran. Although the decision of the 3 European countries as the members of JCPOA is not clear yet, this issue has become the headline of world media.
At the same time, on August 27, Trump increased import tariffs of Indian goods up to 50%. This instruction includes the previous increase of 25% as a penalty of oil purchase from Russia. As a result, the economic level of 2 countries reduced to its lowest level and affected the export of India to America significantly.
In the Middle East, the war between Israel and Hamas is going on without any results and Israel seriously insists to invade the whole Gaza.
The war between Russia and Ukraine is also going on without any clear results.

Crude and Fuel Oil Markets in East Asia

Crude Oil Prices under Fire of Drone and Tariffs, Temporary Stability in the middle of Risks

he mutual drone attacks of Russia and Ukraine to energy infrastructures empowered supply risk and prevented the probable fall of crude oil price. However, the continuation of Russia’s crude oil import by India, despite the serious tariff imposed by Donald Trump, showed that global disruptions of supply reduced in short-term and hence, Brent crude oil prices remained in the same level of $66-68.
On August 28, Singapore’s 180CST closed at $420. Bitumen prices in Singapore and South Korea touched a slight drop and closed at $420 & $408, respectively.

Bitumen Market in Bahrain and Europe

Summer Holiday Dropped Prices in Europe

Bitumen price in Bahrain is still fixed at $400, the range of bitumen prices in Europe decreased to the range of $380-430 that can be because of summer holidays in Europe.

India Bitumen Market

Monsoon, Demand Constraints; Limited but Ongoing Purchases from Iran

The Indian market remained under pressure from the monsoon season, and construction activity has also remained limited. Prices stayed almost unchanged this week after a modest internal growth of just two dollars last week. However, there have been limited requests for bitumen purchases from India to Iran over the past week.

China Market

Rain and Recession, The Chinese Market in Repetition of Stagnant Weeks

Import prices in East China remained stable, like previous weeks. However, heavy rainfall in northern China and slow consumption in the east and south hindered market growth, making this week’s conditions in China almost identical to last week.

Market Analysis of Iran

Logistical Challenges Amid Energy Crisis; Eyes on European Decisions

Iran’s bitumen market is increasingly volatile and affected by political and international events while awaiting new changes on the international stage. Energy imbalances have slowed loading processes, and simultaneously, a shortage of containers has led to increased shipping costs for some ports. Decisions made by three European countries over the next week may alter market trends.

Insight by Razieh Gilani from Infinity Galaxy

In a week where discussions about Snapback negotiations and tariff hikes against India dominated global developments, the bitumen market has remained more than ever in anticipation of geopolitical decisions. The stability of oil prices despite drone attacks and oversupply, along with the recession of the Chinese and Indian markets, indicates that markets currently are unwilling to move further. However, this stagnation may serve as a precursor to the next wave of change.

In such an environment, Infinity Galaxy operates with a keen focus on three main pillars:

1. Real-time analysis of global politics and pricing,
2. Assessment of the actual capacity of destination markets,
3. Provision of operational solutions tailored to high-risk logistical conditions.

At Infinity Galaxy, we believe that stability is only built through a deep understanding of instability; therefore, even in waiting markets, we seek out hidden opportunities for our clients.

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