Bitumen prices have risen significantly due to tensions between Iran and Israel, fluctuations in the Iranian Rial, and a 23% shortage of vacuum bottom.
On the anniversary of October 7, Israel intensified its attacks in southern Lebanon and the Gaza Strip. Despite widespread global opposition to these actions, Israel remains engaged in conflict. The rising tensions in the Middle East are significant factors contributing to the increase in crude oil prices.
The Milton Storm temporarily halted oil and gas operations in the Gulf of Mexico, resulting in the temporary closure of Florida’s ports. This disruption affected U.S. oil reserves and triggered upward movements in crude oil prices.
Although concerns regarding tensions between Iran and Israel have lessened, crude oil prices have not experienced a notable decline. Jun Rong, a market strategist at the IJ Institute, believes that geopolitical tensions in the Middle East will persist, but predictions about potential disruptions in oil supply may become more cautious.
At the same time, some analysts indicate that it would be unusual for Israel to target Iran’s oil infrastructure. They forecast that if Israel shifts its focus to other targets, crude oil prices could drop significantly. Meanwhile, other analysts suggest that the market is awaiting upcoming U.S. inflation data, set to be released on October 10. On October 10, crude oil prices climbed to $77.02, while Singapore 180 CST closed at $459.
Bitumen prices in Singapore and South Korea were recorded at $537 and $445, respectively. In Bahrain, bitumen continues to trade at $395, with European prices ranging from $460 to $510. In India, bitumen prices are anticipated to rise by mid-October after a decline at the beginning of the month.
Global Market Recently
Following the tensions between Iran and Israel, fluctuations in the Iranian Rial against the U.S. Dollar, and a significant shortage of vacuum bottom averaging 23%, bitumen prices have seen a notable increase.
Iranian bitumen prices are expected to maintain their upward trend for the time being, with no indications of a potential price drop.
Overall, the global trend for bitumen prices across producing countries appears to be on the rise.
