Despite the increase in the base price of vacuum bottom in Iran, the bitumen market remained inactive due to market fluctuations and low competition.
Over the past week, as tensions between Iran and Israel eased, regional issues have become more unpredictable. The ceasefire status between Israel and Hamas remains uncertain after six months, and tensions continue in the Red Sea. Brent crude oil, which had been rising since December 13, 2023, is now increasing at a slower pace. The gold market experienced its largest drop since 2022 due to reduced tensions between Iran and Israel, while Brent crude stayed within the $86-88 range. Analysts suggest that Brent crude oil prices could peak at around $92.
Meanwhile, the U.S. is considering additional economic sanctions on Iran, particularly targeting crude oil. However, reports indicate that President Biden is hesitant to implement new sanctions due to the upcoming U.S. presidential election and their potential impact on oil prices and the American economy.
According to a report by the Oilprice website, referring to Standard Chartered, global oil demand is expected to increase significantly in May and June. However, this analysis could change based on daily circumstances.
On Wednesday, April 24, Brent crude oil closed at $88, while Singapore 180 CST was priced at $507. Bitumen prices in Singapore and South Korea were $415 and $405 respectively, showing a $10 increase each.
It is anticipated that Bahrain will see a bitumen price surge in the upcoming week, potentially rising by $50 to around $430. This presents a favorable opportunity for bitumen producers in the Middle East. Bitumen prices in Europe ranged between $476 and $510.
On May 1, India is expected to see a bitumen price increase, though it may be lower than market expectations. It is uncertain whether this will continue the upward trend of the previous four periods.
Price Trends in Iran
Despite the rise in the base price of vacuum bottom in Iran, the bitumen market saw little activity due to fluctuating market conditions, uncertain market trend predictions, and limited competition among vacuum bottom producers. This could indicate subdued demand in key markets like India.
Overall, market uncertainties are expected to persist until there is a clearer situation in the Middle East.
