Iran faces rising export pressure and disruptions in vessel schedules due to adverse weather conditions.
The 7th Gas Exporting Countries Forum (GECF) Summit takes place in Algeria amidst shifts in the global energy market dynamics due to geopolitical events worldwide. Recent conflicts such as Israel’s Gaza war and ongoing Houthi attacks on commercial vessels in the Red Sea and Gulf of Aden have prompted some LNG vessels to alter their routes, resulting in increased transportation costs and delayed deliveries. Concurrently, the price of natural gas has experienced a notable decline during the summit.
On Tuesday, Michelle Bowman, the Federal Reserve’s leader, stated that there’s no rush to lower the US interest rate, particularly due to inflation risks that could impede efforts to manage or even reignite price pressures. Simultaneously, Joe Biden announced that Israel agreed to halt military actions in Gaza to observe the Ramadan Month. However, Israel, Hamas, and Qatari mediators have all expressed concerns about the slow progress of the ceasefire in Gaza.
Following Reuters’ report on the Organization of the Petroleum Exporting Countries (OPEC) extending voluntary oil production cuts for another three-month period, the futures prices of Brent oil and WTI surged by over one dollar per barrel on Wednesday.
Referring to three sources, Reuters reported on Wednesday that the latest round of American sanctions against Moscow will add complexity to the sale of Russia’s oil to India. Washington made this announcement on the second anniversary of Russia’s military aggression against Ukraine.
Global Bitumen Market Prices
Wednesday saw Singapore’s 180 CST oil dropping by approximately 5 USD, closing at 446 USD, while its bitumen prices remained steady at 425 USD.
South Korea’s bulk bitumen prices remained stable at 410 USD.
Bitumen prices in Bahrain remained unchanged at 360 USD.
In Europe, the range of bitumen prices fluctuated between 430-480 USD.
A minor increase in bitumen prices is anticipated in India on March 1st, marking the third consecutive rise since early February.
As the year draws to a close, Iran experiences heightened export pressures, resulting in disruptions to vessel schedules in the Persian Gulf due to adverse weather conditions, thereby exacerbating exporters’ challenges.
Competition for vacuum bottom remained minimal last week, and Iran is expected to witness some price increases within the next 5 days.
