Weekly Bitumen Report: Shock in Iran’s Market
On Wednesday, and after 2 days of decreasing trend of crude oil prices, it did not face any considerable changes as the worries about fall of demand in Europe neutralized the concerns of supply disorders in the Middle East as a result of war between Israel and Hamas in Qaza and crude oil future quotes reached 88.13 US dollar per barrel with a slight increase.
In Europe, the commercial activities of the European Union faced a sort of recession in October and the expected recession might affect crude oil outlook. The Euroilstock data shows that oil refineries of the region will consume less crude oil in the crisis of this economic growth.
In the Middle East, different countries are attempting for the ceasefire between Israel and Hamas to send humanitarian aids to the Palestinian civilians. On the other hand, the risk of Israel ground attack to Qaza reduced crude oil prices.
However, crude oil prices might be supported as China, as the biggest importer of world crude oil, has approved a 1 trillion-yuan ($137 billion) sovereign bond issue that might improve the economic situation of the country. Besides, the reduction of crude oil reserves in the United States as the biggest consumer of crude oil supported the prices.
Based on the data of American Petroleum Institute, on Tuesday the market sources announced that USA reserves will decrease to 2.7 million barrels in the week ending 20 October. The 8 analysts participating in Reuters survey estimated that crude oil reserves increased 200K barrels during the week.
In the meantime, Japan requested Saudi Arabia and other producers to increase oil supply to fix the prices. All the contradictory news led to daily changes of crude oil direction.
On Wednesday, Singapore’s HSFO CST180 fell 9 USD and reached 473 USD. In the meantime, bitumen price in Singapore closed at 520 USD.
South Korea’s bitumen price was stable at the range of 420 USD and Bahrain bulk bitumen was traded at 415 USD. Considering a small raise, bitumen price in Europe reached the level of 480-560 USD.
Approaching Diwali festival in India, the market is facing some recession and the Indian refineries decision for the price announcement on the first of November is not clear yet. However, a slight growth or stability of the prices can be expected.
After several weeks of confusion in Iran market, finally on 25 October, the new circular about the return of export currency was released and the exporters were obliged to return the currency to the Central Bank of Iran based on the new rule. As a result, Iran bitumen price start the rise of at least 30 USD. The effects of this circular on export from Iran is not clear yet, however, market reaction to the new conditions should be observed more accurately.
Considering the new changes in Iran market, the valued readers of this article are encouraged to get in touch with Infinity Galaxy team to make informed decisions and experience valuable deals with us.
This article was prepared by Razieh Gilani, the export manager of Infinity Galaxy (www.infinitygalaxy.org).
