Crude oil and bitumen Prices fluctuations during the last week
The Ukrainian government claims that Russia launched a new wave of missile attacks on Kharkiv and Odesa’s buildings and infrastructure one year after it waged war against their country. Thus, it appears that preparations are being made for a protracted conflict.
China’s foreign minister also stated that “US-China policy has entirely deviated from the rational and sound track” and warned of the likely repercussions. Containment and suppression won’t make America great, he continued, and they won’t stop China’s revitalization either. These cautions and worries about the possibility of a new cold war will have long-term effects on the world.
The International Atomic Energy Agency’s (IAEA) Director General paid a visit to Iran last week to persuade the IAEA Board of Governors to reconsider, and most likely no resolution will be passed against Iran. This was sufficient to cause the Iran Rial to recover after it had been sharply devalued over the previous two weeks.
The price of crude oil last week ranged from 82 to 85 USD. With the exception of Wednesday, March 8, when a sharp decline in Singapore’s fuel was noted, acceptable growth was noted on the other days. On Wednesday, the price of HSFO CST 180 was recorded at 446 USD, Singapore’s bulk bitumen fluctuated between 495 and 505 USD, and the price of bitumen in South Korea increased by 5 USD to reach 440 USD.
Since the beginning of February, South Korea’s bitumen prices have been mildly increasing. In general, the significant increase in bitumen prices is attributed to the rise in Chinese demand.
The price of bitumen in Bahrain has been stable at 325 USD for almost two months, and a rise is expected given the rise in the cost of fuel and crude oil.
While bitumen prices in India rose in the second half of February, they stabilized on March 1 and are now mostly out of stock, so a rise in prices in the second half of March is anticipated.
The situation in Iran was somewhat complex. While production costs significantly increased as a result of the unprecedented devaluation of the Rial against the US dollar, refineries competed for vacuum bottom at a rate of over 120 percent. As the year draws to a close, concerns about logistics and shipping have increased, and exporters are feeling pressure from their customers to ship cargo more quickly.
Our team’s conclusion
Contrary to what customers expected and in accordance with what we have frequently stated over the past three weeks, Iran’s price trend is upward, and the depreciation of the rial against the US dollar did not cause the price of bitumen to decline.
We should anticipate price increases in some markets as this challenging trend appears to continue through the end of the current Iranian year. To avoid problems brought on by abrupt and unexpected changes in the market, we firmly advise buyers to base their orders on wise choices and thorough research.
