Weekly Bitumen Report: Concerns on U.S. Economic Crises Along with Raise of the Middle East Tensions

The international attempts to prevent more tension between Iran and Israel in the Middle East have not led to any positive outcome and Iran considers revenge against Israel to be its right. In the meantime, on August 8, there was some news about the possible Iran missile attack on Israel within the next hours of the day and hence, some of the countries in the region are clearing their skies of the flights. Many of the international airlines have even called off their flights to the destination of countries in the Middle East.

The Middle East tension has reached its highest level since October 2023 and the threats by the countries in the region have increased.

Besides, on August 2, the new unemployment rate in America was announced and this rate increased for the fourth consecutive month, this is the longest consecutive period since the financial crisis in 2008. This situation led to “Sahm Rule” which is an economic formula and is a sign of economic crisis in America.

Due to such worries, on August 5, Japan’s Nikkie stock market crashed completely, and more than 10% of its value dropped within one day. This fall was the largest amount during the last 13 years which resulted in an early closure of the Tokyo stock market. On the same day, China’s market experienced a 3-6% fall in different commodities.

On the same day, in the first 15 minutes of the stock market opening in the U.S., more than $2 trillion in value was wiped out from the stocks of various companies. As a result, crude oil prices fell to the lowest level in the last 8 months. However, the start of unrest in Venezuela after its recent election, the increase in anti-immigration street riots in England, and most importantly, the raise of tension in the Middle East recovered crude oil prices in the range of 78 USD, once again. However, there are still worries about the start of the economic crisis in America and China as the first two economic powers in the world.

In a note by the analysts of ANZ Australian Bank, it was mentioned that the intensification of the Middle East tension might affect the export of crude oil and the prices might increase again.

On August 8, Brent crude oil reached 78 USD. Singapore’s 180 CST was 453 USD.

Bitumen prices in Singapore and South Korea were 492 & 415 USD, respectively.

In Bahrain, the bitumen prices are still unchanged at 450 USD, however, some sources report a probable fall of 30 USD.

The range of bitumen prices in Europe fluctuated by around 430-490 USD.

The bitumen market in India improved after a $25 increase on August 1, but concerns about the onset of a global economic crisis have kept some traders on the sidelines.

On August 5, the price of vacuum bottom in Iran decreased by around 7% but the rising dollar rate against the rial and concerns over regional crises prevented a significant decline in bitumen prices. Additionally, unprecedented heat in the Middle East has led to repeated shutdowns in Iran, complicating export operations. The conditions for transport and congestion at the ports of Bandar Abbas and Jebel Ali continue.

It is important to note that this report was prepared before any operations in the Middle East, and conditions and analyses are expected to change thereafter.

To check the latest bitumen prices, visit https://infinitygalaxy.org/wp/bitumen-price-today/.

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