Bitumen Market Faces Upward Pressure Amid Rising Costs and Global Trade Shifts

Key Takeaways

• Bitumen Price Hike: India’s bitumen prices are expected to increase by $10 in mid-March, impacting import costs and market dynamics.
• Crude Oil Volatility: Brent crude remains unstable at $70.39, influenced by geopolitical tensions, economic uncertainties, and fluctuating global demand.
• U.S. Oil Production Surge: The EIA forecasts record-high crude and gas output in 2025, despite market concerns over price stability.
• India’s Import Trends: Crude oil imports rose by 4.7% in February, while petroleum product imports declined by 17.5%, reflecting shifting energy demands.
• Market Outlook: Oil prices are expected to stay within the $60-$80 range, while bitumen markets face short-term volatility due to supply chain disruptions.

Petroleum Price: Bitumen Remains Steady, Hike Expected in Mid-March

• In Karwar, Roadgrip Bitumen (VG40) and Roadgrip Bitumen (VG30) are both priced at ₹36,440.68 per metric ton (MT). In Panipat, Refinery Bitumen (VG40) is available at ₹49,882/MT.
• In Mathura, Refinery Bitumen (VG30) is priced at ₹47,262/MT. Roadgrip Bitumen Emulsion (RS 1) in Pithampur is also offered at ₹31,900/MT for both listings.
• Crude oil prices exhibited fluctuations driven by geopolitical tensions, trade disputes, and economic indicators. Brent crude closed at $70.39, reflecting market uncertainties. 
• 180CST fuel oil reached $460 in Singapore, while bitumen prices stood at $449 in Singapore and $415 in South Korea. Bahrain's bitumen prices remained steady at $420. 
• The price range of bitumen hovered between $410-$440, showing slight declines. Notably, India is expected to witness a $10 increase in mid-March, shifting market conditions in favor of importers. 
• In Iran, bitumen prices surged due to over 25% competition for vacuum bottom purchases, coupled with logistical challenges ahead of the New Year holidays.

Petroleum Demand and Supply: Global Oil Market Faces Volatility

• Global oil and commodity markets remain influenced by multiple macroeconomic factors. The U.S. Energy Information Administration (EIA) forecasted record-high crude oil and natural gas production in 2025, driven by rising demand and lower oil prices. 
• However, concerns over China’s economic growth have raised fears of price volatility. Trade disputes further impacted the energy market, with the U.S. intensifying its tariff war with Canada and the European Union imposing $28.3 billion in reciprocal tariffs on American imports.
• Meanwhile, geopolitical tensions in the Middle East persist, with a fragile ceasefire agreement in Ukraine adding to market uncertainties. In the bitumen sector, Iran's rising demand for vacuum bottoms ahead of holidays has driven up prices, exacerbating logistical constraints. 
• India’s bitumen market anticipates a mid-March price hike, which could alter import dynamics. Despite economic headwinds, short-term crude oil demand remains resilient, as supported by ANZ research findings.

Petroleum News

• WTI crude oil had formed higher lows and higher highs connected by an ascending channel since the start of the month, but the price just broke below the channel.
• Reliance Industries has earned Rs 6850 crore by selling crude oil. Despite Western sanctions on Russia following its February 2022 invasion of Ukraine, there are no direct restrictions on refining Russian crude and exporting refined products.
• Crude oil imports in Nepal received a boost as tank containers arrived at Birgunj Dry Port, reducing import costs by 15% and improving trade logistics.
• India’s crude oil imports increased by 4.7% in February 2025, while petroleum product imports saw a 17.5% decline.
• Malaysia has maintained its April export tax for crude palm oil at 10% and raised its reference price.
• A ship carrying Russian crude, transferred from three smaller tankers that were under sanctions, was discharged into China.
• Oil prices remained lower after an industry report pointed to a rise in US crude stockpiles, while geopolitical concerns continued to influence the market. Oil prices declined after Russia agreed to the US proposal for a 30-day energy ceasefire with Ukraine.
• The recent boost to oil prices from escalating tensions in the Middle East was short-lived, as crude futures fell due to broader economic concerns.

Expert Opinion: Oil Prices Likely to Stay Volatile 

Oil prices are expected to remain in the $60-$80 range amid ongoing concerns over China’s demand and global economic stability. Market participants await U.S. inflation data for interest rate direction and closely monitor OPEC’s next moves to assess future price trends. The bitumen market is likely to remain volatile until the third week of March, with logistical issues and pre-holiday buying pressure sustaining elevated prices.