Weekly Bitumen Report: Stability and Possibility of Price Increase

The prime minister’s national security adviser of Israel stated that the Gaza war could go on for at least the rest of 2024, while widespread humanitarian disasters are happening in Gaza and numerous objections are being observed in different countries all over the world.

While the world is worried about Gaza’s terrible situation, Russia started to advance in Ukraine once again and invaded 3 more cities in Ukraine. 

During the last week, Federal Reserve announced that some American officials are calling for further increase of bank interest rate to control the high inflation of the country. As a result, the price of Brent crude oil decreased around 1% in early last week. After that, on May 29, its prices increased as a result of predictions about the decisions of OPEC and OPEC+ oil producers for the upcoming meeting on 2 June to continue production cut and the possibility of more fuel consumption by the start of summer trips in America.

Sugandha Sachdeva, the founder of SS Wealthstreet believes that the predictions about continuation of oil production cut by OPEC+ members will lead to a positive wave in the markets and this will be a coordinated effort to stabilize the prices and make a balance in the global market of oil. 

Besides, the capitalists are waiting for the data published by American Petroleum Institute about crude oil reserves of this country to evaluate its effects on the trend of oil price. According to Reuter’s forecast on May, 28, it is predicted that the production of America crude oil reduced about 900K barrels during the past week.

In the meantime, while Putin asked Moscow and their trading partners to replace other financial methods with US Dollars, the Indian company, Reliance, signed a contract with Rosneft and agreed to pay for the oil purchased from Russia in rubles.

By the increase in crude oil prices, Singapore CST180 reached 528 USD. Bitumen price in Singapore and South Korea remained unchanged at 440 and 400 USD, respectively.

In Bahrain, bitumen was traded at 480 USD.

The range of bitumen price in Europe was 440-500 USD.

Despite approaching monsoon in India, it seems that Indian refineries do not change bitumen price on June, 1st, or there will be a slight fall in its prices.

The situation in Iran did not change seriously, and although the exporters bear heavy pressures, there is no significant competition among the refineries and the prices remained almost unchanged.

What is almost certain is that prices will not decrease but it appears that the market is awaiting a significant event for an improvement in the bitumen price trend.

Infinity Galaxy team is pleased to cooperate with the valued buyers of the market to experience the joy of business.
This article was prepared by Razieh Gilani, the export manager of Infinity Galaxy (www.infinitygalaxy.org).