Refinery Bitumen (VG30) in Panipat

Crude oil prices exhibited mixed trends with slight declines in futures markets amid conflicting signals from geopolitical tensions and weak global demand. Market participants are closely watching developments in Russia, Iran, and China, as these factors continue to influence supply dynamics and price movements.

Crude oil prices witnessed a modest rise driven by geopolitical tensions and fluctuating market dynamics. China's reduced refinery throughput and subdued crude oil demand significantly influenced the market, dampening global oil price gains. Additionally, the International Energy Agency (IEA) forecasts a global supply surplus in 2025 despite OPEC+ production cuts.

As oil prices decline due to stable U.S. supply and China’s weaker-than-expected economic initiatives, India’s refined fuel exports to Europe continue to grow, surpassing Saudi Arabia’s export levels. This strategic realignment in energy supply, fueled by Europe’s Russian oil embargo, underscores India’s role as a leading fuel exporter, potentially driving expansions in its refining capacity.

VG40 and VG30 bitumen prices have increased across India, attributed to reduced supply and seasonal demand from infrastructure projects. Prices of crude oil also reflect global supply concerns, including OPEC’s delayed production hikes and possible additional output from Iran.

Crude oil prices dropped over 4% as limited Israeli action on Iran eased market fears of energy disruptions. With analysts predicting a surplus for 2025, crude prices are expected to remain under pressure.

Oil prices stabilized slightly after a significant drop last week, with both Brent and WTI showing marginal gains. India’s crude oil import bill rose by 12% in the first half of FY25, amid declining domestic production.

Brent crude futures were down $1.26, or 1.59%, at $77.78 per barrel by 0020 GMT, and U.S. West Texas Intermediate crude futures fell $1.20, or 1.59%, to $74.36 per barrel. MCX Crude oil prices opened at 6,288 with a fall of 1.19%.

Brent crude oil futures fell by 29 cents, or 0.4%, to $79.11 a barrel by 0430 GMT. U.S. West Texas Intermediate crude futures dropped 21 cents, or 0.3%, to $75.64 per barrel. GP Petroleums Limited (GPPL) has announced a strategic partnership with West Coast Oils (WCO), based in Vadodara, Gujarat, to establish a joint venture focused on the specialty and general bitumen sector.

Crude oil futures traded lower on Monday morning after witnessing their largest weekly gains last week due to escalating tensions in West Asia. December Brent oil futures were at $77.75, down by 0.38 percent, and November crude oil futures on WTI (West Texas Intermediate) were at $74.16, down by 0.30 percent.