In India, bitumen prices declined early September, with more drops expected later. In Iran, prices remain steady due to holidays but are likely to follow oil trends afterward.
On Tuesday, September 3, just two days after the discovery of six Israeli hostages’ bodies, large-scale protests erupted across Israel, targeting Prime Minister Netanyahu. Protesters accused him of failing to take adequate steps to secure the captives’ safe return. Meanwhile, U.S. President Joe Biden criticized Netanyahu for not doing enough to broker a ceasefire with Hamas and secure the release of hostages.
Despite ongoing tensions in the Middle East and continued disruptions to oil exports from Libya’s main terminals, crude oil prices saw a sharp decline last week.
According to Reuters in Singapore, oil prices dropped on Tuesday due to slower economic growth in China, the world’s largest oil importer, which raised concerns about future oil demand. This occurred despite the ongoing halt in oil production and exports from Libya, which had strained global crude markets.
Additionally, on Wednesday, OPEC announced that with crude prices falling to their lowest levels in nine months, its members were considering delaying a previously planned voluntary production cut that was set to begin in October.
Warren Peterson from ING Institute noted that the oil market remains under heavy pressure, with long-term concerns about China’s demand outlook. The weaker-than-expected purchasing index data at the end of the week only heightened these concerns, making it clear that even supply disruptions in Libya couldn’t offset worries about reduced demand.
By Thursday, crude oil prices had fallen to $72.95 per barrel. In Singapore, 180CST fuel oil dropped by about $15, settling at $416 per ton.
In the bitumen market, prices in Singapore and South Korea stood at $502 and $410 per ton, respectively. In Bahrain, prices declined by $25, reaching $395 per ton. In Europe, bitumen prices remained stable, trading between $420 and $480 per ton.
In India, bitumen prices fell by about $8 in early September, with further declines expected mid-month. Due to religious holidays in Iran, bitumen prices and shipping costs have remained unchanged, but they are expected to follow the trend in oil prices once the holidays end.
