Weekly Bitumen Report: The Shadow of Recession is Still Felt Strongly in the Market of Commodities

bitumen
June 23, 2022
2 minutes

In the 17th week of the war, various incidents are happening: the west is checking out membership conditions of Ukraine in the European Union, the head authorities of different European countries travel to Ukraine with or without prior notice, the critical city of Donetsk of Ukraine has been almost fallen, and Russia has turned into the largest supplier of oil in China and Saudi Arabia hold the second rank with the production and export of 7 million and 820 thousand tons of crude oil, this has created an opportunity for Russia to obtain more income through energy that covers the costs of war. After three years, the USA allowed Venezuela to export its oil to Europe to compensate its debts to this continent. After all, the chess of energy supply found a complicated form in the world.

Such complicated variables led to the fall of crude oil prices up to 10% within the last 10 days and touched the level of 112 US dollar at the time of preparing this report but still it is in the predicted range of June prices by Infinity Galaxy.

The global economic situation is under severe influence of the abovementioned facts as well as the unprecedented growth of US dollar equity and interest rate in America.

While India bitumen prices had already experienced a fall of around 64 US dollar in June, it is heard that another fall of about 20 US dollar is expected in 1 July too. At the same time, Iran has decreased its vacuum bottom prices around 3.5%. However, Singapore and Bahrain still have a fixed price.

The fear of recession in the world and other mentioned factors have encouraged the buyers to follow their previous orders due to strong shadow of worries in the future market of energy and its effects on the businesses.

In the meantime, disagreements in JCPOA negotiations is strongly affecting the exchange rate in Iran and the start of monsoon in India are among the other reasons of experiencing less export volume. On the whole, the current conditions are not showing a promising market and it is struggling with various worries. Like all the six previous weeks, Infinity Galaxy recommends to act cautiously and purchase goods based on their confirmed demands.

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

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