Iran experienced a substantial 38% price surge in vacuum bottom following pricing adjustments last week. Refinery competition also increased by around 3%.
Last week, India hosted the G20 Summit in New Delhi, where a statement was issued addressing the Ukraine war without directly blaming Russia, but notably, Presidents Putin and Xi Jinping were absent. Among the summit’s achievements, a new project was introduced, competing with China’s BRI project, spanning from India to Europe.
A devastating flood disaster in Libya resulted in a potential death toll of at least 20,000 people and caused a halt in Libya’s oil production, impacting both oil prices and humanitarian concerns.
North Korea’s leader traveled to Russia to meet with President Putin via train, raising concerns about the possibility of North Korea providing military aid to Russia in the Ukraine war, potentially intensifying the conflict.
In a surprising move, the majority of Republicans proposed an impeachment inquiry against President Biden, less than a year before the next U.S. presidential election. The global economic implications of this inquiry remain uncertain.
Brent crude oil prices surged to over 93 USD per barrel, the highest in a decade. Factors contributing to this increase include OPEC+ extending production cuts through 2023, news of reduced U.S. oil reserves, and conflicting reports from China.
In China, crude oil prices rose by 1.5% to reach 728.5 RMB per barrel, the highest since October 2018. Reports of an unstable Chinese real estate market suggest growing economic pressure.
Singapore saw a substantial increase in fuel HSFO CST180 prices, reaching 554 USD in the first three days of the week. Bulk bitumen prices in Singapore rose to 523 USD, while South Korea’s bitumen price reached 435 USD. Bahrain’s bitumen price remained stable at 440 USD, but future increases are possible.
Bitumen prices among European producers ranged from 550 to 600 USD per barrel.
India’s Prices This Week
In India, bitumen prices remained stable or slightly decreased in mid-September during the monsoon season. However, rising demand persisted, and increased shipping charges to various Indian sectors were noted due to a shortage of containers in the Persian Gulf.
Iran implemented pricing changes for vacuum bottom, resulting in a 38% growth in the last week, with competition among refineries increasing by approximately 3%. With crude oil prices nearing 100 USD and the onset of the export season, Iran anticipates a rally in bitumen prices.
