Despite the vacuum bottom price increase in Iran, the bitumen market remained inactive due to market fluctuations and low competition.
In the past week, as tensions eased between Iran and Israel in the Middle East, regional issues have become less predictable. The ceasefire status between Israel and Hamas remains unclear after six months, and tension persists in the Red Sea. Brent crude oil, which had been on an upward trend since December 13, 2023, is now increasing at a slower rate. The gold market saw its biggest drop since 2022 due to reduced tension between Iran and Israel, while Brent remained within the $86-88 range. Analysts suggest that the highest price point for Brent crude oil could be around $92.
Meanwhile, as the U.S. considers imposing additional economic sanctions on Iran, particularly regarding crude oil, reports suggest that President Biden is hesitant to implement new sanctions due to the upcoming U.S. presidential election and their potential impact on oil prices and the American economy.
However, the Oilprice website, referring to Standard Chartered, reported that “Global Oil Demand Will Increase Significantly in May and June.” However, it’s important to acknowledge that this analysis could be subject to change based on daily circumstances.
On Wednesday, April 24, Brent crude oil concluded at $88, while Singapore 180 CST stood at $507. Bitumen prices in Singapore and South Korea settled at $415 and $405 respectively, showing an increase of $10 each.
It’s anticipated that Bahrain will witness a bitumen price surge in the upcoming week, potentially rising by $50 to reach around $430. This presents a favorable opportunity for bitumen producers in the Middle East. Bitumen prices ranged between $476 and $510 in Europe.
On May 1, India is expected to experience a bitumen price increase, albeit lower than market expectations. It remains uncertain whether this will continue the upward trend of the previous four periods.
Price Directions in Iran
Despite the rise in the base price of vacuum bottom in Iran, the bitumen market didn’t experience much activity due to fluctuating market conditions, uncertain predictions regarding market trends, and limited competition among producers of VB. This could indicate subdued demand in key markets like India.
Nevertheless, it appears that market uncertainties will persist until there’s a clearer situation in the Middle East.
