Frequent notices from shipping lines at Jebel Ali spiked shipping costs, posing challenges for Iranian suppliers and exporters
Last week, Houthi missile strikes persisted on commercial vessels, prompting the dispatch of naval warships from various nations to the Red Sea to safeguard the area. Simultaneously, tensions escalated among other Middle Eastern countries. Additionally, in Qaza, the death toll surpassed 20,000 people, with no apparent indication of a ceasefire between the conflicting parties.
On December 27, the price of gold surged to its highest point in two decades, hitting a record of $2,086 per ounce. Despite initial expectations that crude oil would remain steady around $79 per barrel, it rose to $81 on Wednesday before returning to $79 due to various economic factors.
Leon Lee, an analyst at CMC Market, attributes the recent rise in crude oil prices to anticipated interest rate drops and tensions in the Red Sea. While Maersk’s announcement about resuming services alleviated concerns, Goldman Sachs warns that if the Red Sea maritime route faces prolonged closure, crude oil prices might see a long-term increase of $3 to $4.
On December 27, Singapore’s HSFO CST180 rose to $454, marking a $10 increase. Concurrently, Singapore’s bitumen price closed at $460, experiencing a $5 rise.
South Korea’s bulk bitumen settled at $380, also increasing by $5.
Bitumen prices in Europe displayed some strength, while Bahrain’s bitumen price remained steady at $400.
India anticipates a $14.5 drop in bitumen prices as they enter the new year, but they remain optimistic about increased demand from Iran in the latter half of January 2024.
Iran Bitumen Market
The frequent notices from shipping lines at Jebel Ali led to a significant surge in shipping costs to certain destinations, causing suppliers and exporters in Iran to encounter greater difficulties.
Simultaneously, due to a stable exchange rate and uncertainties surrounding shipping lines, refineries didn’t compete for vacuum bottoms.
Wishing everyone a Happy New Year filled with peace, prosperity, and blessings! We extend our heartfelt appreciation to every reader who has joined us for our weekly bitumen report throughout the year. Thank you for your continued support and companionship.
