Iran faces significant challenges due to currency volatility and ongoing regional crises.
An aerial strike in Jordan resulted in the deaths of three American soldiers, leading to heightened tensions in the Middle East and North Africa. The US decision to provide compensation for the attack raised concerns about the potential for a broader regional conflict, causing Brent crude oil prices to rise to approximately $83 per barrel.
The conflict in Ukraine intensified further, with both parties engaging in increased military actions. Meanwhile, Jerome Powell, Chair of the US Federal Reserve, announced an improved economic growth in America over the past year and indicated that a reduction in interest rates in March was unlikely.
Despite government support for real estate projects in China, a 2% drop in steel prices last week signaled economic worries within the country.
Over the past week, Brent crude oil saw an increase to $83 before falling back to $81.88 on Thursday. Singapore’s 180 CST experienced a $2 decrease, reaching $458, while bitumen prices in Singapore remained stable at $434.
In South Korea, the price of bitumen rose by $5 to reach $390. In Bahrain, after several months of stability, the price of bitumen declined by $40 to settle at $360.
Bitumen prices in Europe remained steady at $380-420. In India, after weeks of stagnation, prices rose by approximately $9 on February 1st, leading to increased optimism for the market in February and March.
Despite competition for purchasing vacuum bottom, the bitumen market in Iran faced challenges, with an average competition rate of 10.5% recorded among Iranian refineries for the last 7 announcements in the Iran Mercantile Exchange (IME).
Complexities in Bitumen Market Amid Economic Challenges
The remarkable surge in the dollar value, combined with ongoing regional crises, have significantly challenged Iran’s current situation. Uncertainty surrounding the future dollar exchange rate, coupled with the approaching year-end in Iran, alongside the rising prices of bitumen in India, Korea, and Singapore, creating a pricing allure for Iranian bitumen, contrasted by Bahrain’s price reductions, has added further intricacy to the landscape.
