Huarong Futures: Currently, both asphalt supply and demand are weak, and actual spot market trading is lackluster.

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Geopolitical tensions in the Middle East have flared up again, with Iran firing at merchant ships and the United States launching strikes against Iran. According to a July 7 local-time announcement by the U.S. Department of the Treasury’s Office of Foreign Assets Control, the U.S. revoked a general license that had allowed Iranian oil sales. Related closing transactions will be permitted to continue until 12:00 a.m. U.S. Eastern Time on July 17. The earlier drop in oil prices was partly priced in from the relaxation of U.S. sanctions on Iran; if sanctions are restored, the market may rebound to a certain extent. For asphalt spot, yesterday asphalt spot prices in the Northeast and the Sichuan-Chongqing region continued to fall, while spot prices in other regions were broadly stable. With both supply and demand weak, actual trading in the spot market remained sluggish, and near-term price support stayed firm. (Haitai Futures)
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