Refinery Bitumen (VG30) in Mumbai

Petroleum and bitumen prices are on an upward trend in India amid geopolitical tensions, Red Sea disruptions, and strong domestic infrastructure demand. Crude discoveries and global policy shifts add to volatility. While Indian prices rise, European bitumen prices remain weak. Market outlook stays firm, though tempered by economic and geopolitical risks.

Crude oil prices are showing modest gains amid OPEC+ cuts and fresh U.S. sanctions on Iran. India’s crude output continues to decline, pushing import dependence to 89.4%. Global supply remains tight. Despite optimistic trends, domestic production struggles persist, reinforcing the need for upstream investment and policy reforms.

Crude oil prices rebounded amid China’s economic growth and geopolitical risks. India’s crude imports increased, with Russia emerging as the top naphtha supplier. Base oil prices remained mostly stable, though buyer sentiment remained cautious. Market volatility is expected due to global economic policies, supply chain disruptions, and geopolitical tensions.

Oil and bitumen prices continue to be influenced by global economic conditions. While crude oil remains volatile, bitumen prices are expected to rise in India by mid-March. Key developments include Iran’s rising bitumen demand, the U.S. maintaining record-high oil production forecasts, and India’s increasing crude oil imports. Experts predict that crude oil will remain within the $60-$80 range shortly, with volatility persisting in the bitumen market.

India is diversifying crude oil imports, increasing purchases from Africa and South America while reducing Russian intake due to U.S. sanctions. Despite falling crude prices globally, domestic fuel rates remain stable, benefiting refiners.

Bitumen prices remain volatile due to fluctuating crude oil prices and supply chain disruptions. OPEC+ supply cuts and geopolitical factors are influencing demand trends. While prices declined in India, refinery price hikes could trigger rebounds. Experts predict continued volatility, with geopolitical and economic developments shaping future price movements globally.

China’s crude oil imports fell 5% in early 2025 due to U.S. sanctions and port restrictions, raising freight costs and limiting supply. Refined product exports dropped 18%, while LNG imports declined 7.7%. However, imports are expected to rebound in March-April as refiners adapt, securing alternative crude and attracting more non-sanctioned tankers.

Crude oil prices saw fluctuations, ending at $72.24 per barrel. Singapore’s 180CST bitumen fell to $473, while Iranian bitumen prices rose due to competition for raw materials. Iraq plans to boost exports, raising oversupply concerns. India’s bitumen market remains uncertain, with potential price corrections in early March.

India's crude oil imports from Russia have dropped to their lowest in over a year due to fresh Western sanctions. Refiners are shifting focus to Iraq, Saudi Arabia, and African suppliers to ensure stability. Meanwhile, crude prices rise on strong Chinese manufacturing data, influencing global market trends.