U.S. buyers covered positions amid concerns over the latest round of nuclear talks between American and Iranian negotiators.
The Memorial Day weekend marks the beginning of the U.S. summer driving season, a period characterized by the highest demand for motor fuels.
U.S. and Iranian negotiators met in Rome on Friday for another round of talks aimed at curbing the Islamic Republic’s nuclear program. Both sides said the talks had been productive but that more work remained to be done to reach an agreement. Traders fear that crude supplies could be disrupted if the negotiations fail to reach a deal.
Donald Trump announced on Friday that he is recommending a flat 50% tariff on goods from the European Union starting June 1, stating that the bloc has been difficult to deal with on trade.
OPEC+, comprising the Organization of the Petroleum Exporting Countries and its allies led by Russia, is scheduled to hold meetings this week that are expected to result in another output increase of 411,000 barrels per day (bpd) for July.
The group has planned to accelerate output hikes and may restore as much as 2.2 million bpd by November. OPEC+ has been gradually unwinding production cuts, with additions already made to the market in May and June.
Crude inventories rose by 1.3 million barrels to 443.2 million barrels in the week ending May 16, the EIA reported, as crude imports hit a six-week high and demand for gasoline and distillates declined.
Bitumen prices fluctuated within a tight range in different parts of the world in the week ending May 25.
Cargo prices increased from European export points. In the Baltic and Rotterdam, the price of one ton of exported bitumen increased by $2 and $5, respectively, to $436/t and $448/t. Cargo bitumen in Italy and Spain was also traded by $2, respectively, to $409/t and $417/t.
Further east, Singapore prices slipped on the week as demand slowed. Bitumen prices in this country was down $2 to $396/t.
South Korean prices rose $5 to $391/t, tracking the conclusion of a tender for June-loading cargoes toward the end of the week.
Mediterranean bitumen cargo prices edged higher on slim gains in regional high-sulphur fuel oil (HSFO) cargo values and reached an average price of $401/t.
cargoe delivered in East Africa fell $4 to $499/t while demand has been rising in key markets like South Africa, Nigeria and Kenya.
Iranian bitumen prices declined to $341/t, pressured by lower vacuum bottom (VB) feedstock costs and weaker buying interest ahead of the upcoming monsoon season in South Asia.