Weekly Bitumen Report: Global Improvement of Oil & Bitumen Price Continues

Weekly Bitumen Report: Global Improvement of Oil & Bitumen Price Continues

The strongest earthquake in Taiwan in the past 25 years shook Taiwan. The island supplies 90% of TSMC chip production which is crucial for producing chips for companies.

Copper reached 9,094 USD which is its highest level since last year. Each ounce of gold also exceeded the $2300 mark and it is also among the highest levels during the recent years.

According to Reuters, the global prices of crude oil increased last week as a result of the emergence of the likelihood of an improvement in oil demand in China and America as the 2 main crude oil consumers in the world and worries about the escalation of conflicts in the Middle East and its probable effects on oil price.

In another report by Reuters and after the rise in the price of the Middle East oil index in the past month, it is probable that Saudi Arabia will increase the official price of its light crude oil in May. In the meantime, according to the newest report of Kepler Institute, India has been increasingly purchasing its crude oil from America rather than Russia within the last few months.

At the same time, China’s PMI Index has improved. Based on the reports of the National Bureau of Statistics of China, the activities of Chinese factories have enhanced for the first time, during the last 6 months and the production index has increased from 49.1 in February to 50.8 in March. 

Jun Rong, the market strategist of IG Institute believes that the increasing factors of oil prices are still moving forward and the better-than-expected economic conditions in China and America demonstrate a more optimistic outlook for demand while the geopolitical tension in the Middle East is increasing.

During the last week and as a result of the crude oil surge, Singapore’s 180 CST reached 496 USD on Wednesday. Bitumen prices in Singapore and South Korea were traded at 410 and 400 USD, respectively.

The observed range of bitumen prices in Europe was 430-488 USD.

Bahrain’s bitumen price was stable at 380 USD.

India’s bitumen price increased 1.5 USD despite the upcoming elections and the possibility of stability, due to numerous factors driving the price up.

Bitumen price in Iran is under tight pressure as a result of the unprecedented raise of US dollar value against the Iran Rial, in spite of an increase in the base price up to 8.5%. Hence, there was no significant competition among the refineries to purchase vacuum bottom.

It is expected that as the price of Brent crude oil approaches the $90 mark, the price of bitumen in Iran will increase.

Stay in touch with Infinity Galaxy team to check your bitumen inquiries.

Infinity Galaxy wishes all Muslims a Happy Eid al Fitr in advance.

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