US Sanctions and Vessel Seizures cloud Late-2025 Bitumen Markets
Market conditions across the oil and bitumen sectors became increasingly complex as 2025 drew to a close, shaped by political developments, seasonal disruptions, and uneven regional demand. Brent crude prices finished the final week of the year on a firmer footing than the previous period, moving within the low-$60s per barrel.
Trading uncertainty intensified after the United States imposed sanctions affecting tanker movements in the Middle East, while actions against Venezuelan vessels further strained global logistics. These developments coincided with year-end holidays, which sharply reduced commercial activity and delayed spot transactions in many markets.
Demand patterns varied widely across Asia. Chinese consumption weakened as persistent snowfall and rainfall slowed infrastructure projects, even as output remained elevated due to steady refinery operations in the eastern and southern provinces. At the same time, producers in China began reassessing feedstock security amid growing geopolitical friction involving Venezuela. Elsewhere in the region, Singapore saw prices soften to the mid-$350s per ton FOB, reflecting subdued buying interest and ample supply. In contrast, South Korean exporters benefited from forward demand, with January shipment tenders lending support to pricing in the low-$320s to low-$330s per ton.
South Asia provided a counterbalance to the softer regional tone. In India, stronger construction momentum translated into firmer domestic bitumen prices, supported by ongoing infrastructure activity.
Middle Eastern markets experienced fluctuating conditions throughout the week. Initial pressure from tanker-related sanctions pushed FOB values lower, but prices later stabilized and rebounded as supply tightened, particularly for higher-viscosity grades such as VG40.
Supply constraints were further reinforced by operational changes in Bahrain, where the Bapco refinery suspended all bitumen export movements from mid-December, affecting both marine and truck shipments, according to reports.
African markets responded unevenly to these developments. Import prices in East Africa adjusted in line with Middle Eastern movements, while in southern Africa, construction demand temporarily disappeared as holiday closures brought projects to a halt.
