Weekly Bitumen Report: Oil Price Confusion in Fundamental Market

Only one day after the meeting of foreign ministers of US- Russia in Riadh which was accompanied by public objections from Ukraine and the European countries, Volodymyr Zelenskyy and Donald Trump started sharp criticism against each other, publicly, causing the deterioration of relations between Kyiv and Washington rapidly. It happened exactly at the time of approaching the third anniversary of Russia's invasion of Ukraine and less than a month after the new U.S. government took office.

In the meantime, Trump stated that Zelenskyy’s presidency is illegal, calling him a comedian. Hence, he positioned himself closer to Putin's policies. Putin also declared that he is openly willing to meet with Trump.

Meanwhile, the European leaders got confused about how to respond to Trump’s actions.

The process of captive swap in the Middle East is going on slowly, however, the parties agreed to accelerate it. At the same time, Israel killed another leader of Hamas in an airstrike.

During the last week, crude oil prices reached $76 due to the possibility of oil supply disorder by America and Russia, as well as the market's focus on the outcome of peace negotiations regarding Ukraine. This led to a surge in crude oil prices during trading on Wednesday, February 19.

In the meantime, Goldman Sachs predicted that the ceasefire between Ukraine and Russia may not increase Russia’s oil production.

On February 20, Singapore’s 180CST reached $489. Bitumen prices in Singapore and South Korea were recorded at $445 and $425, respectively.

In Bahrain, the range of bitumen prices remained fixed at the level of $420. In Europe, the price range of $430-470 was observed.

The price of bitumen in India faced an increase of $1.5 per ton for bulk bitumen, while packed bitumen dropped $4 per ton, showing mixed signals in the market. Based on the Initial predictions, a decline of bitumen prices can be expected for the beginning of March.

Despite the increase of US dollar value against Iran Rial and expectations for bitumen price drop, it has not decreased due to approaching end of the year and pressure on exporters to fulfill their commitments before the holiday season. However, it seems that there may be a slight increase as the current trend continues and the holidays approach.

To check the latest bitumen prices at different destinations, check the Infinity Galaxy website: https://infinitygalaxy.org/wp/bitumen-price-today/.

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