Bitumen prices in Iran have reached record highs for 2024, driven primarily by internal factors such as currency devaluation, refinery competition, and a vacuum bottom shortage.
On October 26, just past midnight, Israel launched a retaliatory airstrike against Iran. In response, Iran urgently requested a United Nations session, affirming its right to retaliate. Simultaneously, Israel continued its strikes in Lebanon and Gaza, resulting in numerous casualties.
With the U.S. presidential election less than two weeks away, countries worldwide are closely following the developments. Polls indicate Kamala Harris has a substantial lead over Donald Trump.
China’s economic support initiatives over the past month have bolstered consumer confidence and driven economic growth, increasing demand for gold. Analysts anticipate that the government’s support package will further strengthen China’s economy in the coming months.
Over the past week, crude oil prices dropped to their lowest in a month, fueling hopes for a possible ceasefire between Israel and Lebanon. Reuters reported that global markets are watching for signs of a ceasefire and the gradual relaxation of OPEC’s voluntary production cuts. Alongside a potential reduction in U.S. fuel inventories, these factors drove a sharp decline in oil prices on Wednesday, October 30.
A report by Axios noted that the United States suggested a ceasefire agreement between Israel and Hezbollah could be reached in the coming weeks. On October 31, Brent crude oil reached $72 per barrel, while Singapore’s 180 CST closed at $461.
In Asia, bitumen prices were recorded at $460 in Singapore and $435 in South Korea. Bahrain’s bitumen price has remained steady at $395 for over a month. In Europe, bitumen prices ranged from $465 to $510. Following a sharp rise in mid-October, bitumen prices in India are likely to increase again by November 1.
Conclusion
Despite a sharp rise in the U.S. dollar against the Iranian rial, a 19% competition among refineries, and a vacuum bottom shortage, bitumen prices in Iran continue to climb, reaching their highest levels for 2024. Internal factors remain the primary drivers of pricing in Iran, making it unlikely that even a drop in oil prices will significantly impact domestic bitumen prices.
