In Iran last week, despite the dollar dropping from around 590,000 Rial to 550,000 Rial and a slight uptick in vacuum bottom prices, bitumen prices held steady amid 7.5% competition.
After the US foreign minister’s visit to the Middle East and talks about a ceasefire in the Gaza Strip, crude oil prices stayed stable on February 6th. However, on Wednesday, they surged to around $79 due to Israel’s opposition to a peace proposal between the two parties. Simultaneously, tensions in the Middle East escalated as the US conducted attacks on some targets in Syria and Iraq.
Meanwhile, Priyanka Sachdeva, a senior market analyst at Philip Nova, remarked that there’s no indication of tension easing in the Middle East crisis, thus the unwelcome uptick in crude oil prices persists.
In the eastern hemisphere, significant trading activity has been dormant since the start of the Lunar New Year holidays in China.
On the western front, due to a partial economic recovery in the US, crude oil exports from the country surged to manage oil prices, while Venezuela experienced a 25% decrease in crude oil and refined product exports in January 2024, primarily due to power outages at the country’s oil export terminals.
On February 7th, Singapore’s HSFO CST180 saw a $2 decrease, reaching $439, while Singapore’s bulk bitumen price remained steady at $430. In South Korea, bitumen prices rose by $5 to $400, indicating robust demand from China.
In Bahrain, bitumen prices held steady at $360 for the second consecutive week, while Europe recorded prices ranging from $400 to $430.
After five consecutive declines, bitumen prices in India surged by $9.5 on February 1st, with another anticipated increase of $10 expected in mid-February, signaling positive growth in the industry after months of recession.
Iran’s Recent Economy
In Iran last week, despite a slight decrease in the price of the dollar from around 590,000 Rial to 550,000 Rial and a slight uptick in the price of vacuum bottom, and with approximately 7.5% competition during the past week, bitumen prices remained within their previous range. However, there’s a possibility of further price increases.
A gradual increase in bitumen prices is predicted, mirroring trends from previous weeks.
