Despite the introduction of the Russian oil price cap, crude oil prices reached their lowest level in 2022. Some market analysts believe that the drop in prices was caused by the sale of Russian oil to VIP customers at $40-50. However, the results of Xi Jinping’s trip to Saudi Arabia and the talks between the two sides are still unclear. However, the end of the year looks more promising after China eased its COVID restrictions.
Crude Oil and Bitumen Price in India
Meanwhile, the current market volatility attributed to the sudden drop in the price of crude oil has been a big shock to the petroleum product markets, such that the price of fuel in Singapore fell $13 on December 12 and has risen to $21 on December 13-14.
On the other hand, bitumen prices in India fell by around $20, possibly due to lower crude oil prices and a lack of government budgets for contractors. This is a rare drop in bitumen prices in India in mid-December.
According to the reports, bitumen prices in Singapore rose $10 last week to stabilize at $500 after falling to $30. Bahrain bitumen prices also fell between $50 and $375. The European market stalled again after bitumen prices rose, with Korean bitumen reaching $365.
In Iran, while the vacuum bottom has fallen by about 13% and US dollar interest in the Iranian rial has risen to an all-time high, the average proportion of refineries competing for the VB is as high as 44%. However, for the first-time last year, the price of Iranian bitumen was lower than the price of Iraq cargo, but it should be noted that the quotations were not outside the normal market range, as shortages can occur. Moreover, additional deliveries or lower quality cargoes offer lower bids.
This unstable situation in the Iranian market can change at any moment due to the fall in crude oil prices and fluctuations in the exchange rate of the US dollar against the Iranian rial, and the market will recover. Regardless, with current crude oil prices, Iranian bitumen prices still appear attractive to buyers. However, different crude oil price scenarios cannot be ignored.
This article was prepared by Shirin Yousefi, the Content specialist and market analyst of Infinity Galaxy.