Oil & Gas

Fuel oil prices in India remain stable, with slight regional variations. The Chinese market saw a minor decline due to weak demand and falling crude prices. Global fuel oil inventories rose, influencing bearish sentiment. Major contracts and MoUs were signed for crude, LNG, and renewable energy initiatives, ensuring future supply security.

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.

Roadgrip Bitumen (VG40) in Mangalore is priced at ₹38,559.32/MT, while Roadgrip Bitumen (VG30) in Mundra is available at ₹38,300/MT. In Chennai, Refinery Bitumen (VG30) is priced at ₹45,352/MT, and Refinery Bitumen (VG40) is listed at ₹48,152/MT.

Steel and polymer prices remain stable despite slow fund flows, but market activity is expected to pick up in February-March, potentially driving pipe prices higher. Manufacturers have started increasing rates due to a slight demand surge. Key policy updates, IPO movements, and government regulations on steel quality are shaping the market.

India's zero-tax policy for foreign crude oil suppliers is set to enhance competition and supply security. BPCL secures a major deal with Petrobras, expanding India's crude sourcing. Meanwhile, Russian oil flows to Asia are shifting, and India's trade deficit narrowed in January. Experts see these changes reshaping India's energy landscape.

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.

Crude oil prices experienced modest gains, driven by geopolitical uncertainties and supply chain challenges. India’s crude imports from the Middle East surged to a 27-month high as refiners sought alternatives to Russian oil amid sanctions. Expansion plans in India’s refining sector aim to meet growing demand, while diversification efforts continue to reduce reliance on select suppliers.

Bitumen prices are seeing significant fluctuations, with Roadgrip Bitumen (VG30) priced between ₹38,300 and ₹42,420 per metric ton across different Indian regions. The market is experiencing mixed demand trends, influenced by geopolitical events and seasonal slowdowns, particularly in northern India due to winter conditions. The global crude oil market dipped following President Trump's announcement to increase U.S. oil production.

DI and ERW pipe prices have increased as manufacturers revise quotes, with further hikes expected. Demand has picked up since mid-February, driven by seasonal trends and government project activity. The Union Budget 2025-26 has extended the Jal Jeevan Mission, allocating Rs 67,000 crore for clean water access. With rising demand, contractors should act before further price increases.