Tight Bitumen Supply and Firm Demand Keep Indian Market Supported
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Brent crude has softened to $82.34/barrel on recession fears, but disciplined OPEC+ output keeps the downside in check. In India, bitumen prices continue to rise, especially at Kandla, amid tight import supply and strong restocking demand. Market sentiment remains bullish due to ongoing monsoon disruption and limited PSU allocations.
Key Highlights:
- Crude Price Softens: Brent at $82.34/barrel amid European recession fears.
- Bitumen Prices Rise: Kandla market supported by tight supply and bulk buying.
- Imports Depleting Fast: Short supply from Iran (drum shortages) worsening availability.
- Firm Demand Despite Monsoon: VG10 grade seeing high inquiry volumes
Oil and Petroleum Market Price
- Brent crude has declined to $82.34/barrel, primarily due to European recession concerns, although the OPEC+ group's production discipline has limited deeper price erosion.
- In the Indian bitumen market, Kandla prices continue to trend upward, supported by short material availability and consistent bulk demand.
- Import stocks are nearly exhausted, and remaining cargoes are commanding higher prices, indicating tightening supply at higher valuations.
Oil and Petroleum Market Supply & Demand Dynamics
- Demand remains steady in India despite monsoonal disruptions. Bulk buyers are actively restocking, especially at Kandla Port, where operations are running stable.
- Supply-side pressure is visible with import cargoes selling out fast, and ongoing logistical issues in Iran (Bandar Abbas drum shortages) adding to global supply tightness.
- On the other hand, VG10 grade bitumen is witnessing increased inquiries, but slow imports are expected to restrain immediate availability.
Oil and Petroleum Market News and Updates
- IOC is reportedly preparing to launch a fresh tender, as its July allocation review progresses.
- HPCL is currently honoring only limited quantity requests, showing cautious distribution in light of uncertain inflows.
- BPCL is yet to confirm its pricing revision, though monsoon-led procurement activities are expected soon.
- Meanwhile, the Iranian market is experiencing a sluggish start, with Bandar Abbas port facing logistics hurdles, especially a shortage of drums, which is delaying outbound movement.
Expert Opinion: Market Outlook Remains Bullish in Near Term
- The bitumen market in India is expected to remain firm in the short term, buoyed by bulk demand, tightened import availability, and logistics bottlenecks in supply zones like Iran. Buyers should anticipate limited availability and higher prices for import stock in coming weeks.
- The overall sentiment stays bullish until monsoon impacts subside and fresh tenders from PSU refiners (IOC, BPCL, HPCL) normalize market flows.
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