Weekly Bitumen Report: The Weak Signals of the Market and Hopes to Growth after Monsoon

After more than 176 days of the war between Russia and Ukraine, Russia still has not achieved its goals but they have imposed lots of damages to Ukraine and its infrastructure. This war has been the main reason for the inflation in the USA (8.5%), Europe (8.9%), and India (6.7%).

On August 15, the energy market started with the oil price in the range of 94 US dollars. While the economic growth of China was observed during the last week and it was predicted that China would face an increase in demand, crude oil dropped up to 91 US dollars based on the technical trend of the crude oil price, but till the time of preparing this article, it was recovered in the level of 95 US dollars.

As was mentioned in last week’s report of Infinity Galaxy, IOCL decreased bitumen price by about 44 US dollars but it is expected to observe a surge in prices in India by the end of the monsoon and the start of import season.

During the last week, Singapore experienced a fall in the fuel oil price (~16 USD) and a surge in bitumen price (~ 20 USD) and hence bulk bitumen of Singapore reached 570 USD.

Also, the reports demonstrate the increase in export bitumen prices in Europe. The bulk bitumen price of Bahrain was reported as around 460 USD.

However, in Iran and by the empowerment of nuclear talks, US dollar was devalued against Iran Rial and experienced its lowest level during the last 3 months. This factor led to the increase in Iran bitumen price and the packed bitumen of Bandar Abbas on FOB basis reached over 400 US dollars.

Still, this is not clear whether there will be any certain agreement and US dollar devaluation might drop to what extent and the developments in the next days should be tracked.

On the whole, it seems that the decrease in crude price after 6 consecutive months of an upward trend, the drop of 44 USD of bitumen price in India, and the weak signals of the market, there is tough pressure on the market but yet the market players hope to see a dynamic market by the end of monsoon.

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