PARS Rubber Process Oil (Aromatic (Bulk)) in Mundra

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 dipped slightly, with Brent at $71.91 and WTI at $68.02 per barrel. Indian refiners continue to prioritize discounted Russian crude despite sanctions, with March imports rising to 1.85 million bpd. Domestic petroleum product prices remain steady across key regions, while geopolitical factors continue to shape supply chains.

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.

Petroleum product prices remain stable, with base oil, fuel oil, and specialty oil rates varying by grade and packaging. Russian crude exports to India declined due to US sanctions, raising concerns over rising costs. Indian refiners are negotiating deeper discounts, while long-term supply agreements remain uncertain amid evolving global trade policies.

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.

India's crude oil imports from the U.S. hit a two-year high as refiners sought alternatives to Russian supplies amid sanctions. Russian imports declined slightly, with Middle Eastern suppliers filling the gap. Fresh U.S. sanctions on Russian oil impacted revenues, reshaping global trade flows. Competitive pricing and supply diversification will continue.

India’s petroleum market is undergoing a shift due to fluctuating bitumen prices and evolving crude oil imports. US crude shipments to India nearly doubled in February, while Russian exports declined by 25% amid sanctions. Indian refiners are diversifying sources, increasing Middle Eastern imports, and securing long-term energy agreements with global suppliers.

India’s crude oil import bill rose by 2.7% in FY25 due to higher demand and reduced Russian crude discounts. Refiners are diversifying sourcing, increasing US oil and LNG imports. Geopolitical tensions, OPEC+ cuts, and price volatility continue to impact costs. Market trends indicate a shift toward energy security and diversification.

Crude oil prices edged higher as Russian production fell below OPEC+ quotas. U.S. sanctions and tariffs added pressure on global trade. Indian Oil continues Russian crude purchases while expanding refining operations.