US dollar devaluation in Iran led to the surge in bitumen prices, in spite of insignificant competition among the Iranian refineries and stability in oil prices.
Despite warnings from Europe and America, Israel’s conflict with Hamas has intensified in populated areas. On Wednesday, the European Union urged Israel to halt its offensive in Rafah immediately, warning that continuing the action would heavily strain their relations. Blinken stated that the U.S. would not support Israel’s incursion into Gaza.
Meanwhile, in another conflict, Russia may occupy three more regions in Ukraine.
Oil prices remained nearly stable over the past week despite these two wars and international tensions. U.S. shale oil production hit its highest level in six months, while the International Energy Agency (IEA) lowered its forecast for global oil demand in 2024. In contrast, OPEC maintained its oil demand forecast, highlighting significant economic divides and concerns about the future of global oil consumption.
Additionally, on May 14, just hours after Iran and India signed a 10-year agreement to develop the Chabahar port in Iran, the United States warned that any country engaging in business with Iran could face potential sanctions. Conversely, India’s Minister of Ports, Shipping, and Waterways described the agreement as a significant and historic milestone in the relations between the two nations.
On May 15, Singapore’s CST180 reached $507. The bitumen prices in Singapore and South Korea remained unchanged at $440 and $400, respectively.
The price of bitumen in Bahrain stayed at $430, while in Europe, bitumen prices ranged from $440 to $530.
In India, bitumen prices dropped by about $5 in mid-May, coinciding with the ongoing elections.
Bottom Line
In Iran, the devaluation of the US dollar caused bitumen prices to rise, despite minimal competition among Iranian refineries and stable oil prices. The market appears to be in a fragile state with a tendency towards growth.
