Crude and Bitumen Prices Ease Amid Weak Demand, Stockpile Surge

 Key Highlights

• Brent crude dropped to $68.95 amid rising U.S. stockpiles 
• Bitumen prices slipped in Europe; Bahrain held firm at $400 
• U.S. gasoline demand surprisingly weak in peak season 
• Trade policy concerns triggered fresh uncertainty in oil markets

Oil and Petroleum Market Prices

• Crude Oil (Brent): $68.95
• Singapore 180 CST Fuel Oil: $410
• Bitumen Prices:
  1. Singapore: $449
  2. South Korea: $412
  3. Bahrain: $400 (unchanged)
  4. Europe: $415–$450 (slight decline)
• Global oil prices, especially Brent crude, faced downward pressure this week, reflecting bearish market sentiment amid increased supply and subdued demand. Bitumen prices also saw minor corrections in some regions, particularly Europe, ahead of the summer holiday season.

Demand and Supply Dynamics

• The U.S. Energy Information Administration (EIA) reported a notable rise in gasoline and gasoil reserves, even during peak consumption months.
• Gasoline demand in the U.S. has weakened unexpectedly, further increasing stockpiles and contributing to the fall in oil prices.
• Bahrain’s strategy remains focused on customer retention, maintaining stable bitumen pricing at $400.
• Overall, the supply situation appears to be outpacing demand, especially in key consumer markets like the U.S.

Oil and Petroleum Market News

• Geopolitical Tensions: The Israel-Hamas conflict and the ongoing war in Ukraine continue without resolution. However, these events have had minimal immediate impact on oil prices.
• Trade Policy Shifts: Former President Donald Trump announced:
  1. Continuation of a 25% tariff on Japanese imports
  2. A potential trade agreement with India
  3. Warning of tariffs on 150 smaller countries
• These announcements have sparked concerns in Europe, with Germany’s finance minister warning of potential blowback on both the U.S. and EU economies.
• Uncertainty in U.S. trade relations with the EU and India was a key factor behind this week’s price decline.

Market Expectations

• The market remains cautious, with no clear resolution in geopolitical conflicts and increasing concerns over global trade friction.
• Oil prices are expected to stay volatile due to weak demand signals, rising inventories, and inconsistent trade policies.
• Bitumen prices may see further regional adjustments, especially in Europe, as seasonal factors and customer retention strategies drive localized pricing decisions.
• Investor sentiment remains fragile, awaiting clarity on U.S. economic direction and global political stability.