Why the Current Market of Bitumen Faces Many Ups and Downs

From 23-29 October, VB price in Iran increased by about 16%, and simultaneously Iran remained on the blacklist of FATF for 6 more months.

Based on the latest polls, Biden has overtaken Trump and its effect on Iran was significant, in less than 3 days, US Dollar decreased from 325,000 Rial to approximately 285,000 Rial, concerning the current inflation, high costs of providing raw materials, transportations, and newly announced rate of VB, Iran bitumen price increased significantly.

WTI and Brent Oil prices have also decreased about $ 36.5 and $36 per barrel respectively whose reasons can be:

1. Increase of 4.32 million barrel in the inventory of oil reserves of the USA

2. Increase of COVID-19 victims all over the world whose result can be a new wave of lockdown in the near future and decrease of demands

3. A vague vision on the presidential election of the USA and Biden's takeover.

4. Zeta Storm in the Gulf of Mexico has respectively stopped oil and gas production in America up to 66% and 44.5%. However, there is still a small demand and recession in the oil market.

The unpredictable circumstances of the USA presidential election, an increase of ocean freight of the shipping lines as well as their disorganized vessel schedules have made chaos for both importers and exporters.

In India, it is expected to face a jump in prices by IOCL due to huge demands and shortage of material to complete road construction projects.

Like the last one month, the best advice is to follow the strategy of "Purchase-Sale" until reaching a more stable and clear picture of the market. This article was written by Razieh Gilani, the account manager of Infinity Galaxy.