Oil Market Gains Amid US Crude Draw and Russian Export Cuts

Key Highlights:

• VG40 Bitumen dropped to ₹36,640/MT (Karwar), while VG30 held at ₹46,852/MT (Panipat)
   
• SN150 base oil quoted at ₹67.5/kg (Delhi) vs ₹62.5/ltr (Kandla), showing location-driven variation
   
• Crude oil rose ~1% as U.S. stockpiles dropped by 3.2 million barrels and Russia restricted gasoline exports
   
• Market outlook remains bullish amid supply constraints, potential U.S.–EU tariff easing, and close OPEC+ monitoring

Bitumen & Base Oil Price Trends Overview

• Bitumen prices saw mixed trends across regions. VG30 Bitumen at Panipat was quoted at ₹46,852/MT, while VG40 in Karwar dropped significantly to ₹36,640/MT. Bitumen emulsions (RS1 and SS1) in Pithampur traded at ₹32,030/MT and ₹33,130/MT respectively.
• In base oils, SN150 prices were recorded at ₹67.5/kg in Delhi and ₹62.5/ltr in Kandla, indicating regional pricing differences.
• Fuel oil rates remained firm with Virgin Furnace Oil (180cST) in Mumbai at ₹47.5/kg, and LSHS in Jamnagar at ₹50.25/kg.

LubriEdge product line showed premium pricing across segments:

1. Rubber Process Oil (Paraffinic 245) – ₹70.5/ltr (Delhi)
2. Hydraulic Oil 68 – ₹87/ltr (Bhiwadi)
3. Gear Oil 150 – ₹115/ltr (Bhiwadi)
4. Rust Preventive Oil (WDM) – ₹122/ltr (Bhiwadi)
5. Metal Working Fluid (Cutting Oil) – ₹112/ltr (Bhiwadi)

Crude Oil and Petroleum Market Demand and Supply

• Oil prices rose approximately 1% on Thursday amid signs of tightening supply. The U.S. Energy Information Administration (EIA) reported a sharper-than-expected draw of 3.2 million barrels from U.S. crude inventories, bringing total stock down to 419 million barrels. 
• The draw, more than double analyst expectations, reflects steady domestic demand and lower imports. 
• Meanwhile, supply-side pressure increased after Russia announced plans to cut gasoline exports to all but a few strategic allies like Mongolia. 
• This move is expected to reduce global fuel availability, further supporting price strength.

Market News: Crude Oil Prices Rebound on Inventory Draws

• Brent crude settled at $69.18 per barrel, up 67 cents (0.98%), while U.S. WTI crude closed at $66.03, gaining 78 cents (1.20%). 
• Prices initially dipped mid-session following reports that Chevron had received U.S. government approval to restart limited oil production in Venezuela—a nation still under U.S. sanctions.
• However, analysts noted this development was a "one-off" and not indicative of a broader U.S. policy shift toward Venezuela.
• The market quickly rebounded later in the day, buoyed by Russia's planned gasoline export cuts and optimism over a potential trade agreement between the U.S. and the EU. 
• The proposed deal may include a 15% U.S. tariff baseline on EU imports with scope for exemptions, raising hopes for easing trade tensions.

Market Expectations: Bullish Bias on Limited Supply

• Oil prices are expected to maintain a bullish bias in the short term, driven by falling U.S. inventories and constrained product supply from Russia. While the Chevron-Venezuela development initially weighed on sentiment, the market has largely absorbed it as a unique exception rather than a policy shift. 
• If U.S.–EU trade talks result in tariff reductions, it could spur broader economic activity and energy demand. Market participants will closely monitor further inventory data, geopolitical moves, and policy signals from OPEC+ in the coming weeks for direction.