Bitumen Market Outlook Following the Oil Price

The Middle East was under the influence of several political factors during last week:

1. The serious war between Israel and Palestine
2. Lifting 95% of sanctions that were imposed against Iran by Donald Trump
3. Approaching the presidential election of Iran
4. Negotiations between Iran and Saudi Arabia

The exchange market of Iran observed a downfall trend during the week. The US dollar depreciated against Rial more and more which led to the growth of prices of export commodities.

On the other hand, since Saturday and by the end of Ramadan month, the market will flourish to compensate for the lack of sale within this month. Therefore, we can anticipate more increase in competition among the refineries.

As reported by Infinity Galaxy on 11 May 2021, it seems that the oil market is neglecting the fear of the covid-19 pandemic and Iran-US negotiations. Meanwhile, the stable decision of OPEC has helped the market to get the consensus on rising demand in summer. Powered by the Goldman Sachs estimation for oil to reach $80.

The wave of lockdowns in India will reach an end by the end of 15 May 2021 and road construction projects will be followed more strongly.

The financial transactions were processed slowly due to both lockdown in India and the Eid holiday in Dubai by which the central banks could not remit the funds at the appropriate time.

The gap between Iran price and demand in India has increased. The export of Iraqi bitumen has also jumped. The production capacity of reliable Iraqi bitumen refineries is much less than the quantity that is sold in the market. It is an alert for the buyers. Be cautious about the source of the commodity that you are buying the bitumen from. There is a high risk of facing off-quality cargoes at the moment. The export from Iranian refineries touched its lowest level in the past week.

The surge of bitumen price in the global market especially in India is expected as this business was not stopped even during the lockdown period.