Weekly Bitumen Report: Contraction and Confusion in Market Signals

The financial and oil markets in the world have faced confusion as a result of humanitarian crisis and Middle East war and international attempts to relieve this crisis.
On one hand, the World Bank warned that the current crisis can encounter the world with 3 scenarios of “minor disruption”, “medium disruption”, and “major disruption” and in case of more escalation of Israel- Qaza war, crude oil could reach to more than 150 USD per barrel which is the major disruption and there will be thorough malnutrition all over the world.
On the other hand, the reports demonstrate that by the start of new war in the Middle East, Russia increased its oil marine export up to 27% and it has no plan to export decrease. Besides, Saudi Arabia also announced that they can add 3 million barrels to their production in the shortest possible time. In the meantime, America lifted its oil sanctions against Venezuela for the next 6 months.
China news shows a reduction in the oil reserves of the country and on Monday, 30 October, the markets of metal and crude oil showed some growth of their price at the beginning of the week.
On the other hand, after one month of applying contraction policies, inflation in the Euro region has reached its lowest possible level during the last 2 years which is the sign of avoiding the increase in interest rates in Central Bank of Europe. But the current issue is the reduction of economic growth and fear of recession.
Simultaneously, for the third frequent month, OPEC announced that oil production has increased through this large economic cartel.
All these contradictory news do not allow the analysts to have a clear image about the economic future of the world.
On November 1, Singapore’s HSFO CST180 reached 459 USD and Singapore and South Korea’s bulk bitumen were traded at 515 and 415 USD, respectively.
Bitumen price in Bahrain reduced to the level of 400 USD and European markets observed some reduction as well.
Bitumen price in India decreased 10 USD and a rise in transportation charges from Persian Gulf was announced to be effective from 1 November for many ports.
In Iran, there are still problems arising from the new regulations for applying the new exchange rate of the US dollar against the Iran Rial for bitumen, and this has caused a lot of ambiguity in the export conditions of bitumen in Iran for how to calculate the rate. It seems that these ambiguities will be largely resolved in the new week.
Infinity Galaxy team will invite you to experience a secure trade considering the latest challenges of the market.
This article was prepared by Razieh Gilani, the export manager of Infinity Galaxy (www.infinitygalaxy.org).