Weekly Bitumen Report: The Fundamental Improvement of Crude Oil Price and Possibility of Positive Changes in the Market
The temporary ceasefire between Israel and Hamas started last Friday, and it continued. Both parties released more captives during this time. These fragile conditions did not help the humanitarian crisis and economic situation of the world significantly, but at least the number of daily victims decreased.
In the meantime, crude oil prices were raised because of factors like severe storms in the Black Sea, the devaluation of US dollars, and the possibility of supply reduction by OPEC+ in the meeting of 30 November.
According to Reuters, the officials reported that the strong storm in the Black Sea disturbed crude oil exports from Kazakhstan and Russia up to 2 million bpd.
In the meanwhile, OPEC+ informed about difficult negotiations of oil and energy ministers in the meeting of 30th November and the possibility of policy changes by this coalition.
On Wednesday and based on the reports of 4 different sources, Reuters declared that OPEC+ will have a tough way regarding the plan of crude oil supply in 2024, and probably they will investigate the possibility of changes in the previous agreement rather than more reduction in the production program.
However, the initial results of the 136th meeting of OPEC+ showed that the group decided to continue its reduction of crude oil production in 2024. The group also agreed to reduce its production up to 1 million bpd from 2024. This is the addition to the previous reduction of 1 million bpd that was applied by Saudi Arabia from last summer. This matter has been basically approved, and the members should vote for it. Besides, it was also agreed that Brazil will join OPEC+ from 2024.
Meanwhile, Reuters reported China’s changes and declared that the CICC Bank of China banned its staff from analyzing and discussing any descending analyses. Besides, the display of any luxurious lifestyle of the employees of this bank is also forbidden.
On Wednesday, 29 November, Singapore’s HSFO CST180 raised around 13 USD and reached 476 USD after frequent falls during the week. Bitumen prices in Singapore and South Korea were traded at 480 and 390 USD. Like previous weeks, bitumen price in Bahrain remained at the level of 400 USD.
In the European regions, bitumen price was 390-430 USD.
Bitumen price in India decreased 12 USD for the first half of December. These frequent drops in India markets are the signs of tough times for the traders of this field in India.
Although the base price of vacuum bottom decreased in Iran, there was no notable competition among the refineries, and there was heavy pressure by the buyers to lower the prices. But from Tuesday, the US dollar devaluated against Iran Rial, and Iranian suppliers received considerable inquiries from their buyers, it can be expected that there will be significant competition in the market by the next week.
However, the current situation of the market is totally dependent on crude oil price, and it will move in line with crude oil changes. So, it is required to follow market changes with full awareness. Infinity Galaxy team will proudly accompany you in this way. Stay with us.
This article was prepared by Razieh Gilani, the export manager of Infinity Galaxy (www.infinitygalaxy.org).
