In Iran, recent developments in bitumen pricing reflect a notable uptick, influenced by a combination of factors including increased operational costs and production expenses during the ongoing New Year holiday.
According to Oil Price’s report, there’s a growing optimism in the oil market, with $90 Brent becoming increasingly plausible. Despite ongoing demand uncertainty, factors such as geopolitical tensions, a weaker US dollar, and ongoing OPEC+ supply cuts are driving prices upward.
As of Thursday, oil prices remained around $86 per barrel, largely due to ongoing OPEC+ production cuts, the depreciation of the US dollar against other currencies, and persistent geopolitical tensions in the Middle East. Consequently, many analysts anticipate that oil prices could rise to around $90 per barrel.
Worries have surfaced regarding the repercussions of a cargo vessel hitting the Baltimore Bridge in the USA, followed by the bridge’s collapse, on the worldwide supply chain. The bridge was a crucial link to the Baltimore port, the primary hub for automobile exports and the ninth largest port for imported goods in the USA.
The port is also the second-largest in the USA for coal exports. Additionally, the devaluation of China’s Yuan against the US dollar, along with currency imbalances, caused the Indian Rupee to plummet to 83.59 against the US dollar, marking a new historic low.
As the RMB experienced its most significant devaluation against the US dollar since November, Singapore’s DBS Bank suggested that such devaluation reflects mounting concerns about geopolitical risks, which are on the rise. The bank indirectly highlighted potential conflicts such as a war between China and America, Chinese military involvement in Russia’s invasion of Ukraine, and escalating border tensions between India and China.
Price Trend on this week
On March 27, the 180 CST in Singapore was traded at $490, while bitumen prices in Singapore and South Korea closed at $405 and $395, respectively. Bahrain raised its bitumen price by $20 to reach $380. In Europe, bitumen prices ranged from $450 to $490.
Despite a $7 decrease, bitumen prices in India have stabilized at the beginning of April, attributed partly to the upcoming general elections.
In Iran, the base price of bitumen surged by 8.2% in the past week. Despite the ongoing New Year holiday, port operation costs and production expenses have risen, aligning bitumen prices in Iran with the global upward trend. However, various complex factors typically influence bitumen prices in Iran.
This article was prepared by Shirin Yousefi, the Content specialist and market analyst of Infinity Galaxy
