Volatile Exchange Rates
President Biden made a very secure and covert trip to Ukraine on the first anniversary of Russia’s invasion of that country. This visit and Russia’s widespread support for Europe at the Munich Security Conference demonstrate the West Party’s strength in opposition to Russia. At the same time, on Wednesday, Russia unilaterally withdrew from the nuclear treaty. These political movements’ potential negative effects on the global economy are not yet known.
It is a sign of rising tension in the Middle East that an Israeli oil tanker was attacked on Friday in the northern Indian Ocean.
The number of earthquake victims in Turkey and Syria has surpassed 45,000 and is still rising. Following the earthquake in Turkey, a powerful earthquake struck Tajikistan on Thursday, causing concern in the Middle East.
Since Wednesday, the previously rising trend in crude oil has changed, and Brent has fallen to 82.04 USD. Some analysts think it’s a response to news reports about rising interest rates in central banks across the world. Others, however, contend that it is merely a technical trend that could change.
HSFO CST 180 increased by 11 USD on Monday to reach 430 USD.
Bahrain’s bitumen price was still announced at 325 USD while Singapore and South Korea’s bulk bitumen reached 500 and 450 USD, respectively.
The unheard-of increase in the value of the US dollar relative to the Iranian rial caused severe inflation and a sharp rise in all costs, including those for vacuum bottoms, internal bulk transportation, ocean freight, and steel sheets. In addition, on February 20th, the cost of Iran’s vacuum bottom rose by roughly 3.5%. Nevertheless, over 75% of the VB was purchased in competition between refineries.
The exchange rate has not yet been under control, and it appears that export markets do not experience any stability, despite recent announcements by the Iran Central Bank to establish a new center of currency exchange.
Since the Iranian year is coming to an end and the market is currently unstable, it is advised that buyers monitor market changes more carefully to prevent any delays in receiving their orders.
