Weekly Bitumen Report: Will the Market Stick to its Current Stable Position?

Last week was replete with numerous incidents, with fears and hopes!
The price of vacuum bottom dropped by about 17 US dollars in the latest announcement of the IME. Simultaneously, some refineries like Isfahan, Tehran, and Bandar Abbas competed on VB around 4-11%.
As a result of failure in the nuclear negotiations, US dollar value increased in the market of exchange rate. Each US dollar surpassed 300,000 Rials. The nuclear negotiations should come to a conclusion until mid-December and the hopes of reaching a compromise are stronger. Accordingly, the market expects the fall of US dollar.
Although on Monday oil report of Infinity Galaxy, we suggested that the market cannot expect a positive future for increase in oil price until the end of December, the crude oil price reached up to 75.77 US dollar. Technical and fundamental analysis do not show any support for this uptrend yet.
However, the latest news about control of Omicron variant through the third dose of Pfizer reinforces hope to recover the current situation.
On 8th December, the latest trade advisory of the Adani terminal announced the limitations regarding imported container of Iran that were withdrawn. Hence, a brighter future can be imagined for the marine transportation in the coming weeks. This will result in more moderate ocean freights and acceleration of cargo delivery by the suppliers.
After the sharp fall of rates up to around 50 US dollars, it seems that market can observe a fragile stability for the next two weeks. The situation might entirely change under the direct influence of below factors:
1. Result of Iran nuclear talks
2. Condition of oil price
3. Control of Omicron in the world
4. The improvement of transportation industry in the world
5. The decision of Iranian bitumen producers on competing more or welcoming the current stable situation
This article was prepared by Razieh Gilani, the sales manager of Infinity Galaxy (www.infinitygalaxy.org)