Bitumen prices in Iran are under pressure due to the US dollar’s rapid appreciation against the Iranian Rial, despite a base price increase of 8.5%. This has led to reduced competition among refineries for purchasing vacuum bottoms.
The inflation rate in the Eurozone decreased to a level that was less anticipated by economists last month, increasing expectations for the European Central Bank to ease its monetary policies in the coming months.
According to Eurostat’s raw data released on Thursday, the annual inflation rate for goods and services in the Eurozone dropped from 2.6% to 2.4% in March 2024. This marks the lowest level of inflation in the past four months and is lower than predicted.
The annual inflation rate for industrial goods in sectors unrelated to energy was 1.1% (compared to 1.6% in February), while energy inflation was -1.8% (compared to -3.8% in February).
The European Central Bank’s latest projections suggest that the average headline inflation rate for the current calendar year will be 2.3%, 2.0% for the next calendar year, and 1.9% for 2026.
Brent crude oil has increased by 15% since the beginning of this calendar year, reaching 89 USD per barrel in early April. Based on the March projections by the ECB’s economic staff, the average oil price in 2024 is assumed to be 79 USD per barrel.
If crude oil prices remain at these elevated levels or experience further increases in the coming months, it will inevitably impact inflation in Europe and potentially slow down the ECB’s rate reduction plans.
During the past week, Singapore witnessed a surge in crude oil prices, leading to a rise in the price of 180 CST to 496 USD on Wednesday. Meanwhile, bitumen prices in Singapore and South Korea were recorded at 410 and 400 USD, respectively.
In Europe, the range of bitumen prices varied between 430 and 488 USD. Bahrain’s bitumen price remained steady at 380 USD.
Despite upcoming elections and the potential for stability, India experienced a 1.5 USD increase in bitumen prices due to several contributing factors.
Market Momentum in Iran
In Iran, the bitumen price is facing significant pressure due to the unprecedented rise in the value of the US dollar against the Iranian Rial, despite a base price increase of 8.5%. Consequently, there was limited competition among refineries for purchasing vacuum bottom.
This article was prepared by Shirin Yousefi, the Content specialist and market analyst of Infinity Galaxy
