Weekly Bitumen Report: The Anticipation for Market Movements

On the 211^th day of Russia- Ukraine war, it seems that Russia is planning to call its reserve forces with the purpose of intensifying the military operations. This action might lead to a more complicated war situation and even increase the international economic crises.

In the meantime, based on the recent reports of Platts, the central banks of the 5 main economic powers are attempting to match their countries’ situation with the interest rate of the USA to avoid more inflation.

On the other hand, the worries on the reduction of production level have caused undesirable economic situation in most of the countries. This was enough to see a negative opening of the oil price in the different markets on Monday and it turned positive during the same day. But on the whole, it did not exceed the channel of 92 USD during the week.

Besides, fuel experienced almost negative signals on the first 3 days and on Wednesday, fuel had a weak growth of 1-3 USD in Singapore Markets.

Also, Iran president is attending the annual UN meeting in New York. The presidents of different countries had negotiations with him about JCPOA but still there is no clear report of these meetings.

Although, India increased its bitumen price by around 9 US dollars on 16 Sep., it is heard that some falls are expected to happen on 1 Oct. 2022. The prolongation of monsoon in some regions of India caused some delay in the start of road construction projects.

In the meanwhile, Iran is expected to decrease the prices of some of its oil products up to more than 15% based on the pricing formula within the next week.

Bahrain decreased its bitumen price by around 20 US dollars during the last week but Singapore bitumen price increased 5 US dollars (USD 560) on Wednesday and South Korea bitumen price increase 5 US dollars too (USD 505).

On the whole, it seems that the market trend can be promising from the beginning of the 4^th week of September as the bitumen stock of the most of the countries are empty now. The market activists are hoping for a dynamic market within October if the oil price does not fall more.

This article was prepared by Razieh Gilani, the export manager of Infinity Galaxy (www.infinitygalaxy.org).