The bitumen market in Iran is on the rise due to a 2.5% increase in the base price of vacuum bottom, significant growth of Middle East fuel, and rising domestic costs.
On July 21, Joe Biden withdrew from the U.S. presidential election, and two days later, Kamala Harris was officially named the Democratic candidate. AXIOS had previously reported that Biden would exit the race over the weekend, leading to a modest improvement in commodity markets. However, concerns over China’s sluggish economic growth caused crude oil prices to drop to $81.
Meanwhile, Israel’s airstrike on Hudaydah Port in Yemen and increasing Middle Eastern tensions prevented further declines in oil prices despite the economic concerns about China. Concurrently, Israeli Prime Minister Netanyahu’s speech to the U.S. Congress faced opposition, with many members boycotting the event.
According to Reuters, market sources noted that the American Petroleum Institute reported a fourth consecutive week of declines in U.S. crude oil, gasoline, and distillate stocks, indicating stable demand from the world’s largest oil consumer. Additionally, according to ING analysts, wildfires in Canada contributed to rising oil prices as some producers had to cut production, posing a significant threat to supply.
These analysts also highlighted that while the market is nearing a phase of increased sales, they believe fundamental factors will drive prices higher in the third quarter of 2024 due to supply shortages. Market sources also reported that U.S. oil reserves decreased by approximately 3.9 million barrels in the week ending July 19.
At the same time, it appears Indian refining companies such as Indian Oil and Reliance Industries have obtained U.S. permission to resume importing Venezuelan heavy crude oil, allowing India to diversify its heavy crude imports beyond Russia. On July 24, Singapore’s CST180 reached $491, with bitumen prices settling at $474 in Singapore and $385 in South Korea. European bitumen prices ranged from $470 to $530, while Bahrain maintained a price level of $450.
Bitumen Prices in Iran
Despite the monsoon season, bitumen prices in India rose twice and are expected to increase by around $10 on August 1. India’s bitumen market seems poised for a recovery after several months of recession. In Iran, the bitumen market appears to be on an upward trend due to a 2.5% surge in the base price of vacuum bottom, significant growth in Middle Eastern fuel prices, and rising domestic costs. Iran’s bitumen prices increased by at least $15 compared to previous weeks.
