Weekly Bitumen Report: Fundamental Support for Crude Oil and Bitumen

The failed assassination attempt of Donald Trump and the increase in his victory possibility in the next presidential election of the US caused the commodity markets to maintain their uptrend during the last week.

In this political confusion in the campaigns of the Democrats and Trump’s more success will probably strengthen the current situation.

In the meantime, Orbán Viktor, the prime minister of Hungary and the head of the Europe Commission stated that Donald Trump is “ready to act as a peace broker” between Russia and Ukraine if elected president. Most of the European leaders are dissatisfied with his performance and outlook, as well as his travels to Russia and China.

After more than 2 years, there is no certain status on the Russia- Ukraine war, and despite international protests and numerous casualties, it seems that the balance of the war is in favor of Russia. In the same situation, despite all the efforts for the ceasefire, the Israel-Hamas war is still going on and in the latest air strike of Israel to the South of Gaza, at least 90 people were killed.

In China, simultaneous with the key meeting of the senior leaders to investigate the slow economic growth of the country, the official data shows that China’s economy has been weakened during the second trimester of the year. In the second quarter, ending in June, China’s economy grew 4.7% which was less than expectations after the strong economic start in the first trimester of 2024. The government aims for an annual growth of 5%. The second economic power of the world is struggling with the long-term crises of real estates, heavy debts of domestic governments, slow consumption, and high unemployment rate.

During the past week, the crude oil prices in the global markets have stabilized and strengthened in their previous ranges despite a reduction in crude oil reserves due to Chinese demand and various political events around the world.

In the meantime, the deputy Prime Minister of Russia declared that the global crude oil markets will be balanced from the second half of 2024 considering the implementation of OPEC’s agreements. It is not clear whether price balance means any increase of decrease in his point of view.

On July 18, Brent crude oil remained stable at around 85.5 USD. Singapore’s CST180 was traded at 509 USD.

Bitumen prices in Singapore and South Korea were closed at 475 and 395 USD, respectively.

In Bahrain, the bitumen price is still fixed at the level of 450 USD. The range of bitumen price in Europe was 485-545 USD.

On July 15, bitumen prices in India increased by 1.5 USD. however, despite monsoon time, it seems that bitumen prices in India will not face any reduction and it will probably remain at the current level or face a slight surge on August, 1.

After several months of price stability, bitumen prices in Iran are following an uptrend. Considering the rise in vacuum bottom base price on Saturday, as well as an increase in domestic costs and international transportation costs from Bandar Abbas, and also a decrease in the US dollar value against the Iran rial; we should consider the prospect of increasing bitumen prices in Iran.

To check the latest bitumen prices of different destinations, visit our website:  https://infinitygalaxy.org/bitumen-price-today/.

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