Weekly Bitumen Report: Shadows of Crude Oil Surge on Bitumen Markets
US Secretary of State travelled to the Middle East to negotiate for the potential proposals of Gaza’s security management after the war. His talks will be focused on “an architecture for lasting peace” in his meetings with the leaders of Saudi Arabia and Egypt.
At the same time, Russia’s election commission announced that Putin was appointed as its president for the fifth time, gaining 78% votes. the European Union condemns Russia’s election and declared that the results of Russia’s election in occupied territories of Ukraine are “null and void.
In the meantime, the Bank of Japan ended the world’s only negative interest rate after 17 years. The Bank of Japan, with the goal of reaching a stable 2% inflation rate, ultimately decided to adjust short-term interest rates to a range of zero to 0.1% after a two-day meeting. This is the first time in 17 years that interest rates in Japan have increased.
On March 18, Turkish Statistical Institute announced that the annual consumer inflation in this country has increased up to 67.07% in February which is more than expectations and it is forecasted that interest rate will increase again in this country.
India signed a free trade pact with some of the European countries including a commitment of $100 billion worth of investment over 15 years and 1 billion jobs.
During the last week, Brent crude oil exceeded 85 USD for the first time since November 2023. Prices in the past month were traded in the range of 80-85 USD per barrel until the International Energy Agency increased the prediction of oil demand in 2024 for the fourth time since November in its latest Short-Term Energy Outlook due to the continued attacks by Houthi rebels on oil tankers and commercial ships in the Red Sea.
In addition to this factor, the reduction in oil storage levels in the United States and the drone attack by Ukraine on an oil refinery in Russia caused crude oil prices to reach 85 USD.
On March 20, Singapore’s 180 CST reached 488 USD and its bitumen price closed at 410 USD.
In South Korea, bitumen prices settled at 400 USD.
Bahrain’s bitumen is still being traded at 360 USD. There are rumors about a 20-USD increase in its bitumen price.
The range of bitumen price in Europe was observed at 420-460 USD.
After the seven-dollar fall in India bitumen price, it seems that the Indian refineries aims to preserve the current level of prices on April, 1.
In Iran, there was a bitumen price pause by the start of the New Year holiday but considering the new changes in vacuum bottom prices, it is expected to see 15 dollars surge in its base price.
Likely, if the price of bitumen increases in Bahrain and Singapore, and the upward trend in oil prices continues, we should expect an increase in Iran’s price from the beginning of April onwards.
Infinity Galaxy team aims to assist market players to experience secure deals depending on the market situation. This article was prepared by Razieh Gilani, the export manager of Infinity Galaxy.
