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Weekly Bitumen News September,6,2022

Weekly Bitumen News


  • Bulk and drum prices in Iran were steady last week despite higher VB feedstock prices. Bulk cargoes were transacted between $327-350/t, while drummed cargoes were transacted between $405-420/t.
  • Iraqi drum supply has slowed down as the borders between Iran and Iraq were semi-closed for several days following an increase in political tensions in Iraq.
  • Indian demand continues to be soft due to the monsoon rains, but some Middle East origin bulk and drummed bitumen cargoes were transacted into the region for the rebound in post-monsoon demand expected later this month. Cheaper freight rates attracted buyers to seek more drummed cargoes.
  • Indian state-owned refiners in Mumbai increased ex-Mumbai listed prices of VG10 and VG30 bitumen by 3,310 rupees/t ($41.48/t).
  • Southeast Asian buyers continued to receive offers of Middle East origin bulk to different destinations. Discussions were ongoing for a 5,000t October delivery Middle East origin bulk cargo last week.
  • Bitumen prices from Bahrain remained unchanged at $460/t fob Sitra, while one 3,000-5,000t vessel was scheduled to load a Bahraini origin cargo from the Sitra port this week.
  • In Singapore, waterborne fob prices fell by $14/t last week as the slip in crude oil futures that weighed on market sentiment. There were talks of higher supply availability in October which also eased the earlier snug supply conditions.
  • Prices in South Korea slumped by $27.5/t due to slow demand and weaker energy values. 

Key News:

EU Borrell says Iran nuclear talks process ‘in danger’

London, 5 September (Argus) — The EU’s lead negotiator in the nuclear deal talks with Iran, Josep Borrell, said today the process is “in danger” because of a recent divergence in the positions held by Washington and Tehran.


Asia midday crude futures: Ice Brent rises

Singapore, 5 September (Argus) — Ice Brent crude futures climbed on 5 September ahead of the Opec+ production policy meeting.

At 04:00 GMT, the Ice front-month November Brent contract was at $94.93/bl, up by 1.91/bl from its settlement on 2 September when the contract ended 66¢/bl higher.


China snaps up Iranian bitumen on nuclear deal prospect

Singapore, 30 August (Argus) — The prospect of sanctions relief for Iran if nuclear deal talks with the US progress further has spurred large Iranian bitumen purchases by Chinese buyers, causing a temporary spike in prices last week.


Iran to boost crude capacity to 4mn b/d by March: NIOC

Dubai, 2 September (Argus) — Iran’s crude production capacity will increase by 200,000 b/d to above 4mn b/d between now and the end of the Iranian calendar year on 20 March 2023, state-owned NIOC managing director Mohsen Khojasteh-Mehr said today.


Iraq crisis leaves oil unscathed, for now

The threat of the instability spilling over to disrupt the oil sector is a cause for concern given a tight global market, writes Bachar Halabi

Dubai, 2 September (Argus) — The latest bout of crisis roiling Iraqi politics has not affected crude production or exports, but it highlights concerns about the internal stability of Opec’s second-largest producer given a political system that perpetuates ethnic-sectarian divisions and prevents formation of a stable federal government.


G7 finance ministers to discuss Russian oil price caps

Washington, 31 August (Argus) — Finance ministers from the G7 group of major economies on 2 September will discuss ways to implement caps on the price of Russian oil exports to third countries, the White House national security council said.


Russian product supplies to China rise

London, 30 August (Argus) — Seaborne Russian product exports to China were around 45pc higher on the year at 2.05mn t on 1 January-26 August, data from oil analytics company Vortexa show. Direct product exports by rail to China were up by 42pc at 154,000t.


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Weekly Bitumen News September,6,2022