In Iran, bitumen prices experienced a positive shift following a surge in the VB base price. Iranian refineries are actively working to sustain this upward trend.
On Wednesday, the United Nations Security Council issued a resolution urging the Houthi to cease their assaults on commercial vessels in the Red Sea promptly. The resolution also called for the release of the Galaxy Leader and its crew, who were abducted by the Houthi on November 19. The Houthi responded, asserting that they would continue their attacks in the Red Sea until Israel permitted unrestricted humanitarian aid shipments to Qaza.
Meanwhile, Reuters stated that Iran halted its crude oil exports to China with the intention of selling it at more lucrative prices. Concurrently, the Energy Information Administration of the USA forecasted that despite a slowdown in global economic growth, American crude oil production would reach its peak in 2024. Additionally, OPEC lowered its production levels in a bid to boost crude oil prices.
Crude Oil Market Fluctuations
Simultaneously, on January 9, crude oil prices experienced a 3% decline attributed to Saudi Arabia offering a discount to its Asian customers. By Thursday, crude oil reached approximately 78 USD per barrel, while Singapore’s HSFO CST180 and bitumen closed at 437 USD and 430 USD, respectively. In South Korea, the bitumen price rose by 5 dollars, settling at 380 USD, while Bahrain’s bitumen price remained steady at 400 USD for the third consecutive month. European regions witnessed price fluctuations within the range of 370-470 USD.
On January 1, Indian refineries lowered bitumen prices by approximately 20 USD. The direction for the second half of January remains uncertain, but there is a likelihood of prices either falling or remaining stable. In Iran, bitumen prices experienced upward adjustments following a surge of around 16 USD in the VB base price. It appears that Iranian refineries are working to sustain this increase gradually. The bitumen market, akin to crude oil, appears to be grappling with uncertainty and may require fundamental changes for a more stable trajectory.
