Spot crude imports into the world’s third-largest oil market will rise by 10% to 15% this year from 2020, according to industry consultant FGE.OPEC+ members are unlikely to change its production policy at their next meeting on March 4, and will probably agree to keep output steady in April
India's shift to exporters like US and Nigeria comes amid an increased demand for gasoline, as the pandemic pushes people to private cars instead of public transport.
OPEC+ cuts and covid has India eying spot crude to feed lighter diet
The Organization of Petroleum Export Countries and partners like Russia began a record output cut of 9.7 million barrels a day last year after the coronavirus pandemic battered demand.Premium
2 min read
. Updated: 15 Feb 2021, 07:31 AM IST Bloomberg
Spot crude imports into the world’s third-largest oil market will rise by 10% to 15% this year from 2020, according to industry estimates
Share Via
Read Full Story
India’s refiners are turning to spot oil from Africa and North America as long-term suppliers in the Middle East cut output and as demand for gasoline jumps amid the Covid-19 pandemic.
India shifts oil imports from Middle East to Africa, North America due to OPEC cuts
SECTIONS
India shifts oil imports from Middle East to Africa, North America due to OPEC cutsBy Debjit Chakraborty, Saket Sundria, Bloomberg
Last Updated: Feb 15, 2021, 04:31 PM IST
Share
Synopsis
Middle East oil tends to yield more diesel, while crude from the North Sea, West Africa and US shale fields usually produce more LPG and gasoline. Crude imports from Nigeria in December jumped 68%, while U.S. oil purchases surged almost 77%.
Reuters
Spot crude imports into the world’s third-largest oil market will rise by 10 per cent to 15 per cent this year from 2020, according to industry consultant FGE.
It’s set to be a slow crawl back to pre-virus levels for Indian energy demand with diesel, the most-used fuel, holding back the recovery. While demand for diesel, which accounts for around 40 per cent of Indian fuel use in a normal year, rebounded quickly after the the world’s biggest lockdown was imposed in March, the recovery has since slowed. The annual growth rate for diesel consumption won’t get back to pre-virus levels until the year ended March 2022, said Mukesh Kumar Surana, chairman of Hindustan Petroleum Corp. Used in factories, construction and agriculture as well as powering the truck and bus fleets, diesel is a bellwether of industrial activity in India and its tepid recovery reflects an economy still struggling to shake off the crippling effects of the pandemic. Gasoline demand, by contrast, is being buoyed by people opting to use private cars and motorcycles to avoid being exposed to Covid-19.