July oil imports hit 1-year low on refinery upkeep

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India’s July crude oil imports slumped to their lowest in a 12 months, tanker arrival knowledge from business sources confirmed, and are more likely to rebound in August as refiners are anticipated to spice up runs after upkeep of models.

Crude imports in July fell 12.5% month-on-month to three.4 million barrels per day (bpd), however rose 12.8% year-on-year, as refiners shut models for upkeep and lower crude imports anticipating decrease gas demand through the monsoon season.

Authorities knowledge launched on Tuesday confirmed India’s oil imports declined to about 15.02 million tonnes, about 3.5 million bpd.

Information from commerce sources embody some cargoes that arrive in July and discharged in August, and differ from the federal government knowledge.

“Some refinery upkeep in July restricted Indian imports. Decrease gas demand in April-Might ought to have led to excessive oil and gas shares,” mentioned Refinitiv analyst Ehsan Ul Haq.

Some refiners together with Chennai Petroleum, Mangalore Refinery and Petrochemical and Indian Oil Corp’s Gujarat and Mathura plant had lower crude runs as a consequence of low gas demand, a authorities assertion mentioned on Tuesday.

Some models had been shut at Hindustan Petroleum’s Mumbai and Vizag refineries, IOC’s Barauni, Haldia and Paradip vegetation and Bharat Petroleum’s Kochi refinery for upkeep through the month, the assertion mentioned.

Latin American provides in July fell to their lowest since June final 12 months as personal refiners switched to cheaper Canadian heavy oil, the information confirmed.

Haq mentioned Latin American oil was changed by heavier Canadian grades that traded at deep low cost to West Texas Intermediate (WTI) crude futures. With Dubai-related crudes turning cheaper compared to Brent linked grades in July , Indian patrons shifted to purchasing extra Center East crude, Haq mentioned.

Center East’s share in India’s total imports rose to 64.7% from 59% in June, the information confirmed.

That lifted the share of OPEC’s oil in India’s total imports to 77.6% from 66.3% in June, though in April-July, the primary 4 months of this fiscal 12 months, the group’s share declined to the bottom.

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