With less than 10 days until the presidential elections in Iran, bitumen prices are facing increased pressure due to election-related conditions and rising costs.
During the past week, oil prices reached their highest level. Reuters attributes this surge to concerns over escalating tensions and their impact on oil demand, exacerbated by an unexpected increase in the U.S. Strategic Petroleum Reserve (SPR).
Credible sources report that a drone attack by Ukraine on Russia’s energy infrastructure, which caused a fire at a major port’s oil site, led to a rise in Brent crude oil and WTI indices. Additionally, increased tensions in the Middle East have heightened the risk of oil supply disruptions by regional producers.
Meanwhile, data released last week from China shows that industrial production in May was lower than anticipated, although retail sales, an indicator of consumption, experienced their fastest growth since February.
A market analyst at Singapore’s IG Institute noted that concerns about potential geopolitical tensions in the Middle East significantly boosted oil prices last week. Furthermore, the U.S. Energy Information Administration reported a continued increase in the United States oil refining capacity for the second consecutive year in 2024.
Conversely, Russia’s Energy Ministry announced that its oil production in May surpassed the levels set by OPEC+. However, since late 2022, OPEC+ has implemented substantial production cuts to support oil prices.
On June 19, Singapore’s CST180 reached $515. Bitumen prices closed at $450 in Singapore, and $415 in South Korea, and remained steady at $480 in Bahrain. In Europe, bitumen prices ranged from $455 to $520. Mid-June saw a $2.5 decrease in bitumen prices in India, with no significant changes anticipated.
■ Situation in Iran
In Iran, with less than 10 days until the presidential elections, bitumen prices are under pressure due to election-related conditions and rising costs. Despite this, Iran’s bitumen prices remain attractive for buyers.
