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Figures from the Nigerian Bureau of Statistics fourth quarter (Q4) 2020 report on ‘Foreign Trade in Goods and Statistics’, show that India is Nigeria’s top export destination accounting for 17.12 percent of exports during the period. Crude oil also accounts for 79 percent of Nigeria’s export in the quarter.
India has continued to witness a spike in coronavirus infections, with figures on Thursday putting total active cases at 3.12million, according to data from MOHFW(India) and John Hopkins.
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Refiners in India, the world’s third largest crude oil importer, such as Indian Oil Corporation, Hindustan Petroleum Corp Ltd (HPCL), and Bharat Petroleum Corp Ltd usually buy a significant amount of Middle Eastern and West African crudes through regular tenders.
WAF crude sellers scramble for buyers as Indian refiners step back
West African crude sellers have been dealt a big blow by key buyer India slowing down its purchases as the COVID-19 pandemic continues to ravage the world’s third-largest oil consumer.
India’s state-owned refiners typically issue tenders for a large proportion of their crude requirements, but with the latest wave of COVID-19 infections in the country still raging, no new tenders have been issued since late April, according to trading sources.
Refiners such as Indian Oil Corporation, Hindustan Petroleum Corp Ltd and Bharat Petroleum Corp Ltd usually buy significant amounts of Middle Eastern and West African crudes through regular tenders.
West African crude sellers have been dealt a big blow by key buyer India slowing down its purchases as the COVID 19 pandemic continues to ravage the world s third largest oil consumer.
REFINERY NEWS ROUNDUP: Mixed run rates in Asia-Pacific
The BPCL Mumbai refinery on the west coast of India is currently running at full capacity even as partial lockdown has been introduced in many parts of the western region. It recorded a 118% run rate in March compared with 116% a year ago, while the run rate for 2019-20 (April-March) was 95%, compared with 115% in 2019-20, reflecting the impact of lockdown in 2020.
However, India’s Reliance Industries Ltd. in March ran at 84% at its two refineries at the Jamnagar integrated refinery complex, down from 96% a year earlier, with overall runs still to attain pre-pandemic levels. In March, the domestic refinery ran at 101%, compared with 108% a year earlier, while the export-focused refinery ran at 69%, from 84% in the year-ago month.
Singapore Indian refiners have so far stayed away from slashing crude run rates sharply despite the surge in COVID-19 cases to record highs, but with a rise in regional lockdowns and its subsequent impact on mobility and industrial activity, analysts said they will be forced to scale back crude runs in anticipation of a slowdown in oil demand.
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However, analysts told S&P Global Platts that the run cuts may not be substantial as export demand for some oil products remain robust with other regional economies and oil consumers showing a recovery trend.