Iran’s crude oil exports reached their highest monthly level in May 2023 despite USA sanctions, surpassing 1.5 million barrels per day
The European Central Bank (ECB) has declared that interest rates will remain unchanged in the Euro area, while the US Federal Reserve, one day prior, halted its rate-setting cycle for the first period since March 2022. As a result, the Euro area’s base interest rate has reached 3.5%, which is the highest level in the past two decades, dating back to 2001. The possibility of an economic recession in Europe has previously been addressed.
Reuters has reported in an exclusive report that, despite US sanctions, the volume of Iranian crude oil exports has reached its highest level in the past five years. According to Kepler’s data, the volume of crude oil exported in Iran in May 2023 exceeded 1,500,000 barrels per day, the highest rate of monthly export since the US withdrawal from the Joint Comprehensive Plan of Action (JCPOA).
For the past three days, Brent crude oil has fluctuated in the range of 71-77 USD, yet there is no indication of an upward movement. Furthermore, some analysts have altered their forecast for crude oil prices in the latter half of 2023 and now anticipate a price of 90 USD at the most.
In the last three days, Singapore’s HSFO CST180 price increased by 5 USD, which was a decrease from the preceding weeks. Additionally, Singapore’s and South Korea’s bulk bitumen price were set at 460 and 390 USD respectively.
The price of bitumen in Bahrain has been set at 370 USD, as per the previous months, however, there are reports of an increase of up to 20 USD in the coming days. In India, the price of bitumen dropped to a low of 36 USD on June 15, and is expected to drop further on July 1. This decrease was almost unprecedented for the Indian refineries over the past year. The decrease in demand and the subsequent drop in bitumen prices in India appear to be due to the onset of the heavy monsoon, which has caused flooding in the western ports. The same phenomenon has been observed in the southern hemisphere, as well as in some African countries along the equator.
Bitumen prices in Iran
In the past week, vacuum bottom purchases have been subject to an average of 44% competition. Furthermore, due to the depreciation of the US Dollar against the Iranian Rial, exporters and manufacturers in Iran are likely to experience a more difficult period than in the preceding months. Furthermore, the upcoming holiday season in Turkey and the United Arab Emirates has resulted in a further recession in the market. As of the past two weeks, the price of bitumen in Iran has reached its lowest level in comparison to the current cost of crude oil. Here, we are happy to assist our valued customers with their purchase decisions.
This article was prepared by Shirin Yousefi, the Content specialist and market analyst of Infinity Galaxy
