Weekly Bitumen Report: Heavy Recession in the Ending Days of 2023
Vladimir Putin, Russia’s president, traveled to the United Arab Emirates and Saudi Arabia unexpectedly. It seems that the wars of Ukraine and Qaza, and oil production are the matters that he has plans for negotiations with the leader of UAE. Right now, UAE is hosting the Climate Summit of COP 28 by the United Nations.
On December 1, the ceasefire between Hamas and Israel was broken and humanitarian casualties increased drastically one more time. In the meanwhile, the Houthi movement of Yemen attacked the commercial ships of the Red Sea during the last week and it created a more critical situation in the Middle East. Besides, the situation between Ukraine and Russia is still undecided after almost 2 years.
Considering the possibility of disruption in oil supply as a result of tensions in the Middle East and OPEC+’s decision to reduce production, crude oil prices decreased because of ambiguity about the growth in global demand for fuel and WTI reached the channel of 60 USD for the first time since July 2023.
Vandana Hari, from the oil company of Vandana Insights believes that crude oil price is still under the influence of OPEC+ decision. It is justifiable to see more reduction of crude oil production by the members of OPEC+ but generally, crude oil has never seen such a level of reduction on the whole.
Although it was previously announced, Brazil’s president declared that the country will never be a full member of OPEC+ and instead only seeks to participate as an observer.
In the meantime, Bloomberg commodity index reached its lowest level in the last 2 years as investors are severely worried about the situation of demand. The fall in the export rate in the United States increased the commercial shortage in October.
On Wednesday, 6 December, Singapore’s HSFO CST180 dropped 16 USD and reached 437 USD. Bitumen price in Singapore decreased 10 USD as well and it closed at 460 USD. By a fall of 5 USD, bitumen prices in South Korea reached 385 USD. The range of bitumen price in the European Union was in the range of 380-450 USD with some drops.
Bahrain is still holding the bitumen price of 400 USD.
India will most probably face another fall in bitumen prices in the middle of December after the last 2 frequent drops.
In Iran, there was no serious competition for vacuum bottom purchase like last week and considering the end of 2023 and the market recession, a tough situation is going on for the exporters and producers during the last week.
Infinity Galaxy team warmly invites all the market players to attend the 14th international exhibition of bitumen, asphalt, insulations, and industrial machinery (BAIEX) from 13 to 16 December in Tehran, in Hall 8-9, booth No. 25.
This article was prepared by Razieh Gilani, the export manager of Infinity Galaxy (www.infinitygalaxy.org).
