Weekly Bitumen Report: Increase of Positive Signals Affecting Bitumen Price
In a report, Oil price stated that “In what feels like an increasingly bullish oil market, $90 Brent is now a real possibility. While demand uncertainty persists, geopolitical risk, a weakening U.S. dollar, and OPEC+ supply cuts have moved prices higher”.
On Thursday, the oil price was still reported in the range of 86 USD per barrel whose reasons can be attributed to the continuation of production cut of OPEC+, US dollar devaluation against other currencies, and lack of ceasefire signs in the Middle East. Hence, most of analysts believe that oil prices might increase up to the range of 90 USD.
Meanwhile, concerns have been raised about the impact of a cargo ship colliding with Baltimore Bridge in the USA, and the subsequent collapse of the bridge on the global supply chain. The bridge was being connected to Baltimore port and it is the most important port of America for automobile export and the ninth main port of America for imported goods.
This the second big port in the USA for coal export. Besides, the devaluation of China’s Yuan against US dollar and the imbalance of the currencies led Indian Rupees to reach 83.59 against US dollar. Hence, a new historical record was observed and Indian Rupees reached their lowest level against US dollar.
Once the RMB got the lowest devaluation against the US dollar since November, Singapore’s DBS Bank announced that such devaluation mostly shows the rise of worries about risks of geopolitical developments which is following an upward trend. The bank implicitly pointed out the risk of war between China and America, the possibility of Chinese military intervention in Russia’s military invasion of Ukraine, and the emergence of new border tensions between India and China.
On March 27, Singapore’s 180 CST was traded at 490 USD. In the meantime, bitumen prices in Singapore and South Korea were closed at 405 and 395 USD. Bahrain finally increased its bitumen price around 20 USD to reach 380 USD. The bitumen price in Europe was observed in the range of 450-490 USD.
After a fall of 7 dollars, bitumen price in India seems to be stable at the beginning of April and the main reason for this is also the approaching general elections in India.
The base price of bitumen increased 8.2% in Iran during the last week. While the New Year holiday has not been officially over, most of the port operation costs and production expenses have increased and it seems that bitumen prices in Iran followed the global rising trend. However, more complicated factors normally affect bitumen prices in Iran.
The Infinity Galaxy team is ready to support valued customers with their orders safely.
This article was prepared by Razieh Gilani, the export manager of Infinity Galaxy.
