Iran’s export market is facing challenging times due to increasing marine transportation costs, container shortages, worsening weather conditions in the Persian Gulf, and irregular vessel schedules.
Following Donald Trump’s significant win on Super Tuesday 2024, it became evident that Joe Biden would emerge as his primary rival in the upcoming US presidential election, causing the price of gold to surge to unprecedented heights. Analysts at City Group foresee a favorable outlook for the gold market in the midterm, citing factors such as the uncertain outcome of the US presidential race, geopolitical tensions in regions like the Middle East and Ukraine, and the looming risks of economic recession in America.
The timing of the interest rate reduction in the United States remains uncertain, with analysts suggesting that delaying it could put additional pressure on the gold market and leave the direction of the oil market ambiguous. Despite this uncertainty, the reduction in the dollar index led to simultaneous increases in US stock exchange indexes, crude oil, and base metal prices. Oil prices saw a 1% improvement, with Brent and WTI reaching 82.9 and 79 USD, respectively.
On March 5th, Li Keqiang, China’s prime minister, revealed the country’s economic goals during the National People’s Congress. China aims for an ambitious 5% economic growth this year and plans to implement various measures to bolster its expanding economy. These optimistic projections, coupled with OPEC members extending voluntary supply cuts, have kept oil prices within the range of 80-85 USD, with predictions suggesting a continued upward trend within this range.
On March 6th, Singapore’s 180 CST rose by approximately 6 USD, reaching 460 USD, while bitumen prices in Singapore and South Korea stabilized at 425 and 405 USD, respectively.
In Bahrain, the bitumen market remained unchanged within the range of 360 USD, while Europe reported prices ranging from 440 to 480 USD.
India is anticipated to experience a 7 USD decrease in bitumen prices on March 15th, following three consecutive increases in previous periods.
Iran’s Recent conflicts
The export market in Iran is facing challenges due to rising marine transportation costs, container shortages, worsening weather conditions in the Persian Gulf, and irregular vessel schedules, contributing to difficult conditions. All these factors are slowly pushing prices forward.
This article was prepared by Shirin Yousefi, the Content specialist and market analyst of Infinity Galaxy
