Weekly Bitumen Report: Is the Rally of Bitumen Prices Starting in the World?
During the last week, G20 Summit was held by India in New Delhi. In this forum, a statement was issues in the absence of Presidents Putin and Xi Jinping and without direct blame of Russia in Ukraine war. One of the achievements of this forum was the new project of this group in a competition with BRI project of China which will be from India to Europe.
The flood disaster in Libya and the probable death rate of at least 20K people and the pause in the oil production of Libya affected oil price in addition to the humanistic effects.
In the last week, the leader of North Korea travelled to Russia by train to meet with President Putin. The possibility of military aid from North Korea to Russia in Ukraine war can increase the destructive impacts of the war.
Biden’s impeachment inquiry was proposed by the majority of Republicans in less than a year to the start of USA presidential election. It is not clear to what extent it can affect the world economy.
Within the last week and till the time of preparing this report, the price of brent crude oil exceeded 93 USD which is the highest level in the last 10 months. The main reasons to face such raise can be attributed to the agreement of OPEC+ to continue the production cut trend till the end of 2023, the news about reduction in oil reserves of USA and contradictory news in China.
In the latest reports, China crude oil increased 1.5% and reached 728.5 RMB per barrel which is the highest rate since October 2018. In the meantime, divergent news about unstable market of China’ real states heard that shows China’s economy is severely under the pressure of recession.
At the same time, in the first 3 days of the week, Singapore’s fuel HSFO CST180 increased about 16 USD to reach the level of 554 USD. Singapore’s bulk bitumen price raised significantly and reached 523 USD and South Korea’s bitumen price increased to 435 USD. Bitumen price in Bahrain remained unchanged and closed at 440 USD like the last few weeks but it is probable that Bahrain will see some increase within the next weeks.
Bitumen price among the European producers reached the level of 550 – 600 USD.
In India and by the continuation of monsoon season, stability or slight fall of bitumen prices has been reported for mid of September. However, it seems that such minor fall does not change the demands of Indian buyers and the demand is still raising in this market. Besides, due to shortage of containers in Persian Gulf, shipping charges to different Indian sectors have increased too.
In Iran, by the implementation of new changes in the pricing of vacuum bottom, 38% growth was applied in the last week and after that around 3% competition happened among the refineries.
It seems that by the continuity of increase in the crude oil prices up to the level of 100 USD and the onset of export season, we shall be waiting to see the rally of bitumen prices in Iran.
Infinity Galaxy team with their deep insights on the market changes and trends is pleased to assist the market players to have a safe journey in this volatile path.
This article was prepared by Razieh Gilani, the export manager of Infinity Galaxy (www.infinitygalaxy.org).
