The base price of Iran bitumen is set to increase on May 5th. Its correlation with the direction of oil prices will be closely observed.
For the sixth consecutive time, the Federal Reserve opted to maintain the interest rate unchanged. Officials emphasized that as the progress in inflation control has plateaued in the United States, the interest rate will remain steady. This decision mirrors the rate set during the Central Bank’s June 2023 meeting, which marked the highest level in the past two decades, aligning with the expectations of most economists.
Meanwhile, amidst hopeful prospects for ceasefire agreements between Hamas and Israel, coupled with increased oil storage and production levels in the United States, crude oil prices dipped to their lowest point in the past seven weeks on May 1st.
Analysts from ANZ Bank attributed the recent decline in crude oil prices to the potential ceasefire agreements between Hamas and Israel, alongside the increase in US oil reserves. However, they also anticipate that ongoing signs of inflation and concerns regarding oil demand, particularly with the upcoming travel season in the United States, could trigger a notable surge in gasoline demand, leading to another uptick in oil prices. Additionally, a report by Oilprice indicates that the trajectory of oil prices over the next two months is deemed to be delicate.
Furthermore, ongoing Houthi attacks on commercial ships in the Red Sea could contribute to instability. Should negotiations for peace in the Middle East falter, prices may revert to their previous levels once more.
Prices Within this Week
As of April 30th, Singapore’s CST180 reached $528, while bitumen prices in Singapore and South Korea stood at $445 and $410, respectively. In Europe, the range of bitumen prices varied from $460 to $510. Bahrain’s bitumen was traded at $380.
Bitumen prices in India saw a slight increase of around 100 INR on May 1st, with this change attributed to ongoing elections in the country.
On May 5th, the base price of Iranian bitumen is expected to rise by approximately $15. It remains to be seen how this increase will correlate with the direction of oil prices.
This article was prepared by Shirin Yousefi, the Content specialist and market analyst of Infinity Galaxy
