Following Tuesday’s devaluation of the US dollar against the Iranian Rial, Iranian suppliers received substantial buyer inquiries, indicating an anticipated surge in market competition in the coming week
The temporary ceasefire between Israel and Hamas, ongoing since last Friday, has facilitated the release of captives but hasn’t notably alleviated humanitarian or economic challenges. Concurrently, crude oil prices surged due to Black Sea storms, a weakening US dollar, and OPEC+ contemplating supply cuts discussed in their November 30 meeting.
Reports from officials indicated disruptions in crude oil exports from Kazakhstan and Russia by up to 2 million bpd due to the severe Black Sea storm. OPEC+ faced tough negotiations among oil and energy ministers, contemplating policy changes and the future of crude oil supply in 2024.
Recent insights from Reuters hinted at OPEC+ encountering challenges in determining their 2024 crude oil supply plan, potentially reconsidering prior agreements rather than further production reductions. However, the 136th OPEC+ meeting resolved to continue the 1 million bpd reduction in crude oil production in 2024, in addition to Saudi Arabia’s previous 1 million bpd reduction initiated last summer. Approval and voting by members are pending, alongside Brazil’s anticipated inclusion in OPEC+ from 2024.
Meanwhile, China’s CICC Bank forbade negative analyses and displays of lavish lifestyles among its staff. On November 29, Singapore’s HSFO CST180 saw a significant increase of around 13 USD, reaching 476 USD after recent fluctuations. Bitumen prices varied across Singapore, South Korea, and Bahrain, while India experienced a 12 USD decrease in early December, hinting at challenging times for traders in that market.
VB Price Decline in Iran
In Iran, despite a decrease in the base price of vacuum bottom, refineries faced pressure from buyers to further reduce prices. However, with the recent devaluation of the US dollar against the Iranian Rial, suppliers received increased inquiries, hinting at potential market competition in the upcoming week.
