As the war in Ukraine continues, European Union leaders agreed on Friday to borrow funds to provide €90 billion ($105 billion) in loans to Ukraine to support its defense against Russia over the next two years, opting against a controversial plan to finance Kyiv using frozen Russian sovereign assets. President Vladimir Putin rejected any compromise on ending the war, accusing the EU of illegally seizing Russian assets. Meanwhile, Tatneft, Rosneft, and NNK were sanctioned for “obtaining a benefit from or supporting the Russian government.” These measures come as crude export flows from Russia’s two largest exporters have declined, while smaller producers have stepped up shipments abroad.
Uncertainty over how the United States would enforce President Donald Trump’s plan to block sanctioned tankers from entering or leaving Venezuela has eased geopolitical risk premiums. On Tuesday, Trump said he would impose a “total and complete blockade” on all sanctioned oil tankers bound for or departing from Venezuela, marking a sharp departure from his administration’s earlier position that the measures were focused on countering drug trafficking in the Caribbean. The move has disrupted Venezuela’s crude exports. Meanwhile, Venezuela — which accounts for about 1% of global oil supply — authorized two unsanctioned cargoes to sail to China on Thursday.
China National Petroleum Corporation (CNPC) forecasts that China, the world’s largest crude oil importer, will reach peak oil demand by 2030. However, analysts expect global crude demand to remain resilient, supported by growth in developing economies and rising petrochemical consumption.
European export bitumen prices weakened as winter demand slowed across several markets. In Rotterdam and the Baltic, export cargo prices fell by $16 and $13, respectively, settling at $311/t. In Italy and Spain, cargo values declined by $13 to $318/t. Mediterranean cargo prices also dropped by $12 to $317/t, pressured by weaker regional high-sulphur fuel oil (HSFO) values.
In Asia, bitumen prices from South Korea and Singapore moved lower as ample supply coincided with sluggish demand. Seaborne prices in Singapore and South Korea fell to $356/t and $322/t, respectively. Demand from Australia and New Zealand has begun to improve with the onset of warmer weather, but this support was outweighed by persistently weak buying interest in the well-supplied Southeast Asian market.
Iranian bulk bitumen prices softened amid weaker bids and rising competition from increased supply.