The global financial and oil markets have experienced turmoil due to a humanitarian crisis, conflict in the Middle East, and international efforts to alleviate these issues. The World Bank has cautioned that the current crisis could lead to three possible scenarios: “minor disruption,” “medium disruption,” and “major disruption.” In the event of further escalation in the Israel-Qaza conflict, crude oil prices could soar to over 150 USD per barrel, resulting in severe global malnutrition.
Conversely, reports indicate that as the Middle East conflict began, Russia increased its oil marine exports by 27%, with no plans to decrease them. Saudi Arabia has also pledged to add 3 million barrels to its production swiftly. Meanwhile, the United States lifted oil sanctions against Venezuela for the next six months. China has seen a decrease in its oil reserves, and on October 30th, metal and crude oil prices experienced some growth at the start of the week.
Additionally, after a month of implementing contraction policies, inflation in the Euro region has reached its lowest level in the past two years, signaling a reluctance to raise interest rates at the European Central Bank. However, the main concern remains the reduction in economic growth and the fear of a recession.
Simultaneously, for the third consecutive month, OPEC has announced an increase in oil production within this large economic cartel. These conflicting reports have left analysts uncertain about the world’s economic future.
On November 1st, Singapore’s HSFO CST180 reached 459 USD, and Singapore and South Korea’s bulk bitumen were traded at 515 USD and 415 USD, respectively. Bitumen prices in Bahrain dropped to 400 USD, and European markets also saw some reductions. Bitumen prices in India decreased by 10 USD, and a rise in transportation charges from the Persian Gulf was scheduled to take effect on November 1st for many ports.
In Iran, complications persist regarding the new coming regulations. It can definitely affect the bitumen market and it’s causing significant ambiguity. It is expected that these ambiguities will be largely resolved in the coming week.
This article was prepared by Shirin Yousefi, the Content specialist and market analyst of Infinity Galaxy