Iran’s prices held steady despite a 12% increase in vacuum bottom prices, as refinery competition remained low.
Last week, Putin secured his fifth term as Russia’s president and justified Russia’s conflict with Ukraine. The US threatened to halt military aid to Israel unless they ceased attacks on Rafah. Peace talks between Israel and Hamas continued with US optimism, while the EU’s inflation rate unexpectedly fell to 2.4%.
Maersk, the international shipping line, stated that due to Houthi attacks in the Red Sea, they’ve experienced a 20% loss in maritime transport capacity, likely leading to increased shipping costs for African sectors. Additionally, Indian refineries reportedly sought US approval to import oil from Venezuela. However, crude oil prices remained stagnant due to rising inventories in the US and a strengthened dollar. Brent crude oil is expected to hover between 82-85 USD for now.
Prices in the Market
On May 8, the cost of CST180 in Singapore closed at 509 USD, while Singapore and South Korea traded bitumen at 441 and 395 USD, respectively.
Last week, the price of bitumen in Bahrain rose by 50 USD, reaching 430 USD.
In Europe, bitumen prices ranged from 459 to 510 USD.
Due to election conditions, bitumen prices in India are expected to stay within their current range.
Despite a 12% increase in the base price of vacuum bottom in Iran, prices have largely remained unchanged, as refineries lack significant competition for purchasing vacuum bottom. The market appears to be awaiting clearer direction in oil prices.
