Bitumen prices in Iran are stable, but exports are complicated by global recession fears and port congestion.
In a recent phone call between U.S. President Joe Biden and Israeli Prime Minister Benjamin Netanyahu, Biden emphasized the urgent need for an immediate ceasefire in Gaza and progress on agreements for the release of hostages. Meanwhile, tensions in the region remain high, with reports that at least 50 people were killed in Gaza following another Israeli airstrike. Additionally, intense clashes between Israel and Hezbollah continued to escalate.
In a separate development, authorities in the UK and Greece reported that a Greek oil tanker caught fire after being attacked multiple times in the Red Sea. While no group has claimed responsibility, the attacks have been widely attributed to the Houthis. In U.S. political news, a recent poll shows Vice President Kamala Harris leading former President Donald Trump by 3%.
Last week, oil prices experienced a notable decline in Asian markets, with the trend extending to other markets on Monday, August 19. The drop is largely attributed to concerns about reduced demand in China, the world’s largest oil importer. However, investors are closely watching peace talks in the Middle East, which could influence future market dynamics.
Analysts at Goldman Sachs noted, “The reduction in oil demand from China, coupled with the risk of a GDP slowdown, is causing us to revise our Brent crude oil price forecast for 2025 downward to a range of $75 to $90.”
Recent data indicates that China’s economic growth slowed in June, as industrial production declined, unemployment rose, and the prices of newly built properties fell at the fastest rate in nine years.
In response to falling fuel demand, Chinese refineries significantly reduced their crude oil processing levels last month. However, given the ongoing international political crises and concerns about an economic recession in China, the outlook for oil prices remains uncertain in the medium term. On Thursday, Brent crude oil briefly touched $76 per barrel, while Singapore’s 180CST fuel oil reached $441 per metric ton.
Bitumen prices also fluctuated across the region: Singapore and South Korea closed at $480 and $400 per metric ton, respectively. In Bahrain, bitumen traded at $420 per metric ton, with European markets between $430 and $505. In India, bitumen prices slightly increased by around $0.50 on August 15, maintaining stability within its existing range.
Market in Iran
In Iran, bitumen prices have remained stable. Still, fears of a global recession, coupled with severe congestion at key export ports like Bandar Abbas and Jebel Ali, have complicated the export situation.
