Weekly Bitumen Report: More Pressure on Bitumen Prices with Sudden Fall of Crude Oil

On Thursday, Putin warned America and the West that Russia is capable of providing weapons to other countries to attack these regions. He stated so in response to America and its allies that allowed Ukraine to attack some targets of Russia using their weapons.

At the same time, while international mediators are getting ready to negotiate Israel-Hamas ceasefire and hostage freedom in Qatar, Israel launched new military attacks in the centre of Gaza. Severe bombardments were reported so that Israel declares they attacked Hamas’ targets.

Meanwhile, for the first time in the last 4 months, Brent crude oil prices reached its lowest level during the past week. According to Reuters, while the global markets of Brent crude oil are getting along with the decision of OPEC members about increase of supply by the end of 2024, simultaneously with the increase in crude oil storage in the United States, the price of oil reached its lowest level in the past four months in Wednesday’s trading on June 5th.

Helima Croft, an analyst at RBC Capital Markets, stated: “As part of the global oil markets is closely watching OPEC’s proposed timeline for supply cuts until the end of summer, the increase in storage and changes in commodity market dynamics have altered the trend in oil prices.”

At the same time, the energy minister of Saudi Arabia declared that if there is not enough demand to absorb the available oil supply in the market, OPEC will stop or reverse the facilitation of supply reduction.

As a result of the fall in oil prices, Singapore’s CST180 reached 489 USD. Bitumen prices of Singapore and South Korea settled at 425 and 385 USD, respectively.

Bahrain’s bitumen price remained stable at 480 USD.

The range of bitumen prices in Europe was reported at 460-520 USD.

India bitumen prices fell 4.5 USD on June 1st, and there are not any further predictions for mid of July. Considering crude oil drops and monsoon season, it is forecasted to see some other drops in India bitumen prices.

The price of bitumen in Iran has also come under more pressure due to the increase in domestic transportation costs and local expenses, putting more pressure on exporters to maintain their market amidst the simultaneous decrease in oil prices and rising costs.

Infinity Galaxy team stays with you from the beginning to the end of your bitumen journey to experience the highest levels of the market standards.

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