Oil prices rise and competition in the bitumen industry led to higher bitumen prices last week. And the strengthening Rial against the dollar was not also ineffective.
As predicted last week The crude oil price rose to 83 USD and is getting higher, probably reaching 86 to 88 USD in the next month.
The Russian Ministry of Energy has declared that the voluntary daily reduction of up to 500,000 barrels will be maintained until the end of August. Meanwhile, on July 19, the International Energy Agency and the Organization of Petroleum Exporting Countries (OPEC) confirmed that Iran’s oil production is continuing to rise. As a result, the latest report of the IEA revealed that Iran’s crude oil production reached 3,10 million barrels daily in June 2023, while the price of crude oil in Singapore reached around 80 USD.
Strong demand in China has sent the price of Russia’s ESPO crude blend surging to the highest in eight months as ESPO discounts to Brent are at their narrowest since the EU embargo on Russian oil imports came into effect in December.
Strong demand for cheaper Russian crude from China’s independent refiners, competition from Indian refiners, and the OPEC+ supply cuts, including from Russia, have all combined in recent weeks to lift the price of the ESPO crude.
The price of bitumen in Singapore has risen to 455 USD. In Bahrain, it has risen to 410 USD. The price of bitumen in South Korea has risen to 400 USD. In Europe, the price of bitumen has risen and in Spain has reached 498 USD. The Indian bitumen price remained stable on July 15, after four consecutive drops.
In Iran, the devaluation of the US Dollar against the Iranian Rial and the intense competition between refineries for vacuum bottom caused a rise in bitumen prices.
In the Middle East, the new steel drum bitumen is in the range of 405-415 USD and the bulk bitumen is in the range of 320-325 USD.