Oil imports by Asia’s third-largest economic system rose 5% from January and had been up 24% from a low base in February 2021, when a refinery at Bathinda in northern India was totally shut for upkeep, information confirmed.
Indian refiners usually purchase oil two months forward of processing. Refiners are elevating runs to money in on excessive margins to offset a few of the losses incurred for promoting fuels within the native markets.
Some Indian refiners have additionally deferred upkeep shutdowns of models to realize from exports, whereas assembly rising native gas demand.
Native gas gross sales in India, the world’s third greatest oil importer and shopper, has been rising because the authorities lifted COVID-19 induced curbs as infections subsided.
India, the world’s third-biggest oil importer and shopper, ships in additional than 80% of its crude wants and depends closely on the Center East.
Its reliance on the Center East is, nonetheless, declining as refiners diversify their sources of oil imports to purchase cheaper barrels from elsewhere to spice up margins, a transfer that has lower the OPEC‘s share in India’s oil imports. Final month, the share of grades from Canada and the United States in India’s oil imports surged 14% to their highest in a yr, whereas purchases from the Center East grew the least since October 2021.
The share of African oil rose to a four-month excessive in February, the information confirmed.