Weekly bitumen report: Global oil and bitumen fluctuations and the customers resistance this week
Global markets await interest rate decisions and the outcome of the Jackson Hole meeting could impact financial and energy markets.
On Saturday, the Euro fell to its lowest level of value since mid-June, possibly due to the European Central Bank considering halting interest rate hikes soon. Meanwhile, the Dollar also paused its movement ahead of Federal Reserve Chair Jerome Powell’s speech. Reuters, citing 8 informed sources, reported that European Central Bank policymakers are increasingly concerned about weakening economic growth prospects. Despite ongoing discussions, the move to halt interest rate increases is currently in progress.
Amid concerns about China’s economic situation, the country has taken steps to address the crisis by reducing short-term loan interest rates. While leaving long-term rates untouched, China lowered the base rate for one-year loans from 3.55% to 3.45%.
Oil and bitumen prices’ global fluctuations
As oil prices faced a slight decline during the week due to heightened worries, global markets await interest rate decisions. Key officials from the US Federal Reserve, European Central Bank, UK, and Japan will convene at the annual Jackson Hole meeting in 2023. The outcomes of this meeting could impact worldwide financial and energy markets.
In terms of prices, HSFO 180 CST in Singapore witnessed significant fluctuations over three days, eventually stabilizing around $550 by Wednesday. Singapore’s bitumen price remained steady at about $460.
South Korea saw a $5 drop in bitumen prices, settling at $415. Bahrain’s bitumen price stayed unchanged at $440, and European prices slightly decreased, ranging between $520 and $580.In India, after a mid-August increase, bitumen prices recovered by $50 throughout August, with speculation of another rise in early September.
Bitumen prices in Iran
On August 23rd in Iran, the base price of vacuum bottom bitumen increased by 4.5%, providing clearer market direction. Despite customer pressure for lower prices, a more defined trend in oil prices could sustain upward price movement due to maintenance conclusion and the start of the bitumen export season.
This article was prepared by Shirin Yousefi, the Content specialist and market analyst of Infinity Galaxy