Weekly Bitumen Report: The War between High Demand, Increase of Bitumen Price, and the Pressure on Crude Oil Price

on the 218^th day of Russia- Ukraine war, Moscow declared that more than 99% inhabitants of 4 Eastern regions of Ukraine including Donetsk, Kherson, Zaporizhzhia, and Luhansk voted to join Russia. However, Ukraine and some of the Western countries refused the nature of this voting. The effects of this voting on the economic crises are not clear yet.

The reports from China about Zero COVID and cancellation of all the restrictions show that China has again returned to the world of energy. The gasoil consumption did not decrease in China and the increase of petrol and jet fuel might happen, and this might have positive effects on the increase of crude oil price.

On the other hand, worries of inflation, the empowerment of USD against other currencies, and the undesirable economic situation in the world can be the among the main reasons of fall in crude oil price. The oil chart ending in 28 September showed an increase of 2 US dollars but still the downward trend of crude oil price up to 83 US dollars is expected. It seems that crude oil price is under the pressure of fall and the tendency of increase. However, we need to wait and observe the outcome of 33^rd meeting of OPEC and its impacts on crude oil price.

Besides, it was reported that Bahrain decreased its bitumen price by around 15 US dollars and the prices of fuel and bitumen in Singapore got stable after having 3 days with a downward trend and its bitumen price experienced the range of 545 US dollars.

It is being heard that bitumen price in India is expected to decrease by around 25 US dollars from 1^st October but it has not been officially approved yet.

In Iran, in spite of vacuum bottom drop up to 16.5%, the refineries competed on it in a range of 13- 35% and this competition was already mentioned in the last week report of Infinity Galaxy. Even, it is heard that some of the refineries refused the fall of vacuum bottom price and their prices are being quoted based on the previous announcements.

As mentioned in our Monday interview, the bitumen price is stuck in a war between demand and crude oil price and we shall see how the trend of crude oil price will affect bitumen price in the coming weeks.

However, considering the high level of demands in the market, it seems that bitumen price has more tendency to increase than to decrease.

At the end, Infinity Galaxy should mention that with respect to the restrictions of Internet connections in Iran, contacting through email with the suppliers can be the safest possible way.

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