Weekly Bitumen Report: Crude Leading the Market

The 12th international exhibition of Bitumen, Asphalt, Insulations and related Machinery (BAIEX 2021) was held during 27-30 May 2021 following the hygienic protocols in Tehran International Exhibition. More than 70 companies attended this exhibition to explore more developmental opportunities in the field. The political atmosphere of Iran is getting critical by approaching the day of the presidential election, and the bitumen market is always under the shadow of these political situations. The market of foreign currencies like the US Dollar is still unclear and unstable. Although the nuclear agreement is still under discussion and analysts forecast that it will happen in near future. By the agreement, the fall of dollar value against Rial is definite. On the second day of June 2021, an oil refinery in Tehran caused heavy damages and its effects emerge on petroleum products within the next weeks. As Infinity Galaxy mentioned in Monday’s article, the decision of the OPEC+ meeting finally changed all variations. In the meeting, OPEC + and its associates decided to be committed to the gradual return of oil supply in June and July. This decision made Brent Crude Oil price increase up to 70.62 $ on 2 June 2021. Besides, oil demand is clearly improving due to the acceleration of vaccination programs and the economic recovery in most parts of the world. However, the monsoon is about to start in India within the coming weeks and the importers are not willing to import goods in large volume. Iran will go on a short holiday from 4 June and the market will run from Monday again. It is highly probable that the new vacuum bottom price will be released the same day. Based on the obtained news from official sources, up to the time of preparing this report an increase of 2.6% will happen.