Copyright © HT Digital Streams Limited All rights reserved. India’s October oil imports rise as refineries come out of maintenance; GST cuts, travel increase demand India’s crude oil imports were at 4.6 million barrels per day in September, rising to 5.2 million barrels per day by October 16. (Bloomberg) Summary India’s crude oil imports are expected to rise in October as refineries return to capacity following maintenance. Imports so far in October are 5.2 million barrels per day compared to September’s 4.6 million bpd. Factors include recovering travel demand and GST cuts boosting economic activity. New Delhi: India’s crude oil imports are likely to pick up in October from the past few months as refineries resume operating at higher capacity after scheduled maintenance and the recent GST cuts boost economic activity and consumer demand, oil experts said. Data from global real-time data and analytics provider Kpler showed September imports were 4.6 million barrels per day (bpd), up from 5.2 million per day on October 16. Inventories from the five major suppliers Russia, Iraq, Saudi Arabia, the US and Nigeria increased to nearly 5 million bpd from about 4 million bpd in September. Weakened travel in the latter part of the southwest monsoons this year also lowered demand for fuel, which has now recovered, giving oil imports for refining a glut, experts said. “The monsoon rains affected travel and fuel demand till August-September due to heavy rains, floods and landslides in some states. There is now revival in travel after the rains receded, which may have boosted imports.” said Prashant Vasisht, senior vice president and associate group head of corporate ratings at ratings agency Icra. He added that some refineries had curtailed capacity earlier for maintenance “turnaround period”. “They are likely to operate at higher capacity now, which will boost imports.” Refineries in India usually schedule maintenance shutdowns during June-September, when demand for petroleum products is relatively lower due to the monsoon season. Furthermore, an industry executive said the GST cuts have so far boosted consumption and led to increased transportation and logistics leading to higher oil consumption and imports. Data from the Petroleum Planning and Analysis Cell of the petroleum ministry showed that total oil imports stood at 20.1 million tonnes worth $10.2 billion in September, and 18.8 million tonnes worth $10.5 billion in August. More Russian oil, discounts Meanwhile, oil imports from Russia have seen an increase so far in October after a decline last month. This comes at a time when US President Donald Trump has claimed that India has committed to stop Russian oil imports. India has denied any such move. Data from global real-time data and analytics provider Kpler showed India’s imports of Russian crude oil stood at 1.6 million bpd in September, down about 5% from 1.69 million bpd in August. However, this month, as of October 16, imports are running at 1.77 million bpd. Crude loadings from Russia so far in October have also increased, indicating that supplies will continue to build in the coming months. Some of the loaded crude will reach India next month and will be counted in November data. In October, discounts from Russia actually increased and are in the range of $2.5-4 a barrel versus about $2 in September, said an industry executive who requested anonymity. Similarly, as India looks to increase energy trade with the US amid ongoing bilateral trade talks, oil imports from the US also saw a jump in October. Imports from the US increased sharply to 647,000 bpd of oil this month (as of October 16) from 207,000 bpd in September, per Kpler. This month saw an increase in imports from all the major suppliers, except from the UAE. Inventories from Iraq, Saudi Arabia and Nigeria so far in October stand at 1.01 million bpd, 830,000 bpd and 317,000 bpd respectively. They stood at 836,000 bpd, 630,000 bpd and 229,000 bpd in September. However, imports from the UAE eased to 394,000 bpd in October from 597,000 bpd in September. Oil import is key to the Indian economy as the country imports about 88% of its oil requirement. As geopolitical tensions and tariff wars play out, India has diversified its sources of oil imports to around 40 countries over the past three years. Get all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download the Mint News app to get daily market updates. more topics #ruolie Read next story
India’s October oil imports rise as refiners return to full capacity
