The Middle East Geopolitical Tensions
Geopolitical tensions are still rising in the Middle East with Iran and Pakistan coming into the game. Iran attacked 3 spots in Pakistan, Syria and Iraq, last week. In return, Pakistan answered by launching an attack on the borders of Iran. Disputes are also heating up in Yemen and Syria with UK and US involving directly after their attacks. All these events are making the Red Sea situation riskier than before. Almost all the shipping lines are now avoiding Red Sea and Suez Canal. They are instead replacing other maritime ways even though they are longer. Freights, accordingly, are increasing especially for African ports. In addition to rising freights, there is the risk of container shortage in near future.
All these tensions have confused the oil market and its sub-products. Crude oil is trying to pass through 82 USD but it hasn’t succeeded yet. Traders are still confused about the trend of the market. In bitumen, the situation is also similar. There were some new competitions in the Middle East, which led to the price being higher today. However, the market participants are still moving cautiously.
In the Middle East, the new steel drum bitumen was in the range of $ 360 – $ 365 and the bulk bitumen was in the range of $ 280 – $ 285. The bulk of Singapore is volatile in the range of $ 440 – $ 445 and South Korea is currently $ 375 – $ 380. Bahrain bulk recorded 400 USD at the end of the year.
