India’s crude oil imports rose to their highest level in a year in December as strong demand prospects in the world’s third-largest oil consumer and importer prompted refiners to stock up.
rough Oil Last month, imports rose 7.1% to 19.65 million tonnes in November, according to data shown on the website of the Petroleum Planning and Analysis Cell (PPAC) on Monday.
However, imports were 4.1% lower than a year ago and 5% higher than in December 2019, before the start of the pandemic.
“Indian oil demand continues to improve. Refinery margins are relatively healthy, which is an incentive for refiners to extend runs,” said Refinitiv analyst Ehsan-ul-Haq.
“People are avoiding public transport as far as possible and the use of passenger cars drives up demand for gasoline – currently the main pillar of demand growth. The only problem is high oil prices, which will increase demand over the next few months. may limit growth.
Relatively high imports hit a nine-month peak last month with the country’s oil demand, with gasoline sales hitting an all-time high.
But Julie Torgersrud of Rystad Energy’s oil market team forecast a reduction in India’s diesel demand by about 100,000 barrels per day in January due to the recent impact of the Omicron spread, while gasoline demand remains flat.
“We expect the refinery to grow by another 500,000 bpd in 2022, as demand improves, and new refinery capacity is anticipated to be commissioned.”
of India Reliance IndustriesThe owner of the world’s largest refining complex, imported 1.14 million barrels per day (bpd) of oil last month, down about 8% from November.
Oil product imports fell 2.9% from a year ago to 3.88 million tonnes, while exports jumped 30.6%. The share of diesel was 3.21 million tonnes in December exports of 6.13 million tonnes.
Asia’s third largest economy imports and exports refined fuel because it has surplus refining capacity.
Never miss a story! Stay connected and informed with Mint.
download
Our App Now!!
,