Following a series of seven weeks of oil price increases, there was a decline last week due to concerns about China’s sluggish economic progress and a stronger US dollar. Analyst Tina Teng from CMC Markets anticipates a minor reduction in oil price growth due to China’s weak economic progress and the influence of a stronger US dollar. However, OPEC+ has indicated its readiness to take necessary actions to stabilize the market and control supply.
Meanwhile, Saudi Arabia’s Aramco petroleum refinery announced plans to fulfill all of Asia’s oil requirements for September. They project that Chinese buyers will acquire 50-52 million barrels of crude oil from Saudi Arabia, a substantial increase from the 38 million barrels purchased the previous month.
Last month, a drop in prices for Chinese consumers led to negative inflation in the country for the first time in two years. The consumer price index, a gauge of inflation, decreased by 0.3% in July compared to the previous year, potentially impacting global economic trends.
Russia’s Ruble experienced a significant devaluation, prompting the country to raise its interest rate to 12%. Conversely, for the second consecutive month, inflation decreased in England after a similar trend in the United States.
Amidst the week’s initial three-day decline in oil prices, Singapore’s HSFO CST180 dropped by around 15 USD to settle at 550 USD. Bitumen prices in Singapore and South Korea were recorded at 450 and 410 USD, respectively.
According to our recent analysis, bitumen prices in Bahrain surged by 30 USD, reaching a trading value of 440 USD.
Bitumen prices in the European Union remained within the range of 550-600 USD.
On August 16, Indian refineries raised bitumen prices by 24.5 USD, marking the first substantial increase in the last three months with a total surge of approximately 50 USD.
Despite the competitive landscape with Iranian refineries, bitumen prices in Iran experienced minimal change. With the possibility of an increase in the base price of vacuum bottoms and the allure of stable Iran bitumen prices compared to other markets, demand remains steady.
This article was prepared by Shirin Yousefi, the Content specialist and market analyst of Infinity Galaxy