Weekly Bitumen Report: Trump's Decisions and OPEC Production Capacity: Key Market Factors

After Trump and Zelensky’s arguments in the White House and Europe’s support from Ukraine’s president, the White House stopped its support and supply of military data to Ukraine on March 5. At the same time, the President of France invited the military leader of Europe to Paris stating that Europe entered a “New Era” and needs to increase its military budget.

In the meantime, Russia announced that they are ready for peace negotiations and they welcome Trump’s actions.

Besides, on Wednesday, Trump asked for the release of captives in Gaza, stating that it is “The Last Warning” to Hamas. In a long post in his social media, he wrote that: “I am sending Israel everything it needs to finish the job, not a single Hamas member will be safe if you don’t do as I say”.

At the same time, in response to Trump’s increasing tariffs, China warned that they are ready for “any wars”. After the implementation of 20% tariffs on all imported goods from China by America, in a retaliatory action, China announced that they will impose 10-15% tariff against agricultural goods from America. The implementation of these mutual tariffs has brought the two largest economies in the world one step closer to a "trade war".

During the last week, Brent crude oil fell to the level of $65-70 due to investors' outlook on the gradual implementation of the OPEC+ supply cuts starting in April and the new customs tariffs imposed by the United States.

According to Reuters report from Singapore, the gradual adjustment of the voluntary daily supply cut of 2.2 million barrels by OPEC+ members, as well as the negative impact of U.S. customs tariffs on imports from Canada, Mexico, and China, will affect economic growth and consequently fuel demand.

On Thursday, Singapore 180CST closed at $448. Bitumen price in Singapore and South Korea were recorded at $460 and $420, respectively.

Bahrain still supplies its bitumen at $420, however, it might be moderated shortly as a result of fall in fuel prices.

In Europe, bitumen was traded at the level of $430-460.

On March 1, bitumen VG30 and VG40 in India faced a fall of $3 and $4, respectively. However, it is likely that by mid-March, due to the decision of Indian refineries for the price increase, bitumen prices in India may rise in a new wave. However, the impact of fuel reduction on this decision is currently unclear.

New Year in Iran will start in less than 2 weeks and the competition for vacuum bottom purchase continues. The logistical problems that exporters face at the end of the year have also caused prices to remain unaffected by the conditions of falling oil prices, staying within their previous range. However, it is possible that in the coming weeks, based on the vacuum price formula, the price of bitumen may also be adjusted in Iran.

To check the latest bitumen prices at different destinations, check the Infinity Galaxy website: https://infinitygalaxy.org/wp/bitumen-price-today/.

This article was prepared by Razieh Gilani, the export manager of Infinity Galaxy.