Crude Slide, Geopolitical Pressure, and Cautious Buying
During 5-9 May 2025, global crude oil prices fell. ICE Brent crude prices ranged from $61.41 to $63.58/bl, down $0.74/bl on average. This pushed bitumen prices down globally.
In Asia’s bitumen market, China increased bitumen supplies as refiners responded to lower crude prices. Although demand in eastern and southern China was weak due to rainfall and limited projects, northern China saw stronger demand.
Meanwhile, South China’s competitive prices ($400-415/t fob South China) boosted exports, outpacing markets like Taiwan and Singapore.
Singapore’s exports faced strong competition as buyers turned to buy from South China, where freight costs to markets like Vietnam were lower.
Malaysian markets stayed balanced with anticipated improvement after the Hari Raya Puasa holiday.
In the Middle East, bitumen prices rose due to tight supply and currency issues. Vacuum bottom (VB) feedstock prices increased $10-15/t, but weak crude prices limited further increases.
India’s demand held strong ($340-345/t fob BND) despite minor road work disruptions linked to India-Pakistan border tensions.
Bahrain’s prices remained at $370/t fob Sitra. However, exports may pause during May-June refinery upgrades as they will focus on transport fuels instead of bitumen.
Also, Iraqi drummed bitumen prices dropped slightly, and Kurdish suppliers were inactive.
African markets varied by region. West African import prices fell despite a late-week crude and Mediterranean high sulphur fuel oil (HSFO) price increase, while East African Iranian exports increased ($1.63/t for bulk, $3.50/t for drum). Also, US sanctions continued to disrupt East African trade.
South African imports exceeded demand due to holidays and rain, but the weather is expected to improve from 12 May. Also, Bahrain’s refinery shutdown may affect the supply of this region.
