Weekly Bitumen Report: Various Price Directions in Regional Markets

During the last week and with the reduction of tension between Iran and Israel in the Middle East, it seems that regional issues are facing some kinds of uncertainties. There is still no clear status on the ceasefire between Israel and Hamas after more than 6 months. The Red Sea has not recovered its normal situation and the level of tension is high. Brent crude oil which had been following an uptrend since December 13, 2023, is following the same mode with a very slow pace.

The gold market experienced its largest fall since 2022 by the reduction of tension between Iran and Israel and Brent remained in the range of 86-88 dollars. However, the market analysts believe that the maximum price point for Brent crude oil to be around $92.

In the meantime, while America is planning to impose more economic sanctions against Iran, especially in the field of crude oil, some of the reports show that Biden is not willing to impose the new sanctions due to approaching the US presidential election and the effects of these sanctions on oil price and America’s economy.

However, Oilprice website, citing Standard Chartered, announced that “Global Oil Demand Will Pick Up Strongly in May and June”. Though, it should be noted that this analysis may change depending on daily conditions.

On Wednesday, April 24, Brent crude oil closed at 88 USD. Singapore 180 CST reached 507 USD. Bitumen prices in Singapore and South Korea settled at 415 and 405 USD, with a rise of 10 dollars, respectively.

Bahrain will probably record a surge in its bitumen prices within the next week and it will increase up to 50 dollars to reach around 430 USD, and it will be a favorable chance for bitumen producers in the Middle East. Bitumen price recorded in the range of 476-510 USD in Europe.

On May, 1, India will observe a rise in its bitumen price but the amount will be lower than market expectations and it is not yet clear if it will continue the upward trend of the previous four periods.

Although the base price of vacuum bottom increased in Iran, the bitumen market did not have a dynamic week concerning the market fluctuations, unclear predictions about market trends, and the insignificant competition on VB among the producers. This can signal weak demand in some main markets such as India.

However, it seems that market uncertainties will continue until there is a clear situation in the Middle East.

The sixth Export Potential Exhibition of Iran with the participation of over 25 economy ministers of different countries will be held in Tehran from 27th April to 1 May 2024. Iran seems to be looking for the discovery of new markets at this exhibition.

Infinity Galaxy company welcomes the market activists at this exhibition at Hall 38A, Booth No. 38A13.

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