Weekly Bitumen Report: Continuous Recession and Confusion
Oil prices experienced a smooth trend until Wednesday, 22 November, before Thanksgiving day and before the start of the OPEC+ meeting. But on Wednesday, the oil price dropped around 4% because of the postponement of the OPEC+ meeting that was supposed to be held on 25 and 26 November. On Wednesday, Bloomberg reported that the OPEC+ meeting might postpone until further notice as Saudi Arabia was dissatisfied about the production amount of other members. Before this postponement, the analysts predicted that OPEC+ might extend or even deepen the reduction of oil supply during the next year.
In the meantime, the International Energy Agency forecasted that even if the current agreement of OPEC+ members regarding reduction of supply and voluntary reduction is extended, the market will observe a situation of oversupply in 2024.
Based on the new estimations of the British research company of Cornwall Insight, by the end of COVID-19 lockdowns in China, the general demand of the country for gas consumption increased 6% and it will probably increase during the next months. It seems that China will be the most serious competitor of Europe for gas purchases in the winter.
By the mediation of Qatar, the hopes of America to release the hostages on 24 November and the start of temporary ceasefire between Israel and Hamas, financial markets, and the world of energy might observe some improvements.
On Wednesday, 22 November, Singapore’s HSFO CST180 grew 8 USD and reached 473 USD.
Bitumen prices of Singapore and South Korea closed at 490 and 390 USD, respectively, after a fall of 5 dollars.
Bitumen prices in Bahrain remain fixed like previous weeks at 400 USD, and European regions recorded bitumen prices of 390-450 USD.
After the fall of 7 USD in bitumen prices of India on November 15, another fall of 10-12 USD is expected on first of November, and the current time is almost the toughest period for India market in the recent years and after the outbreak of Corona.
In Iran, the base price of vacuum bottom fell 4.2% compared to the last fortnight. However, the refineries were reluctant to purchase vacuum bottom, and it was traded at the base price, and there was a weak demand against potential supply, which shows the confusion of the market.
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This article was prepared by Razieh Gilani, the export manager of Infinity Galaxy (www.infinitygalaxy.org).
