Asia Oil Newsletter (AON)


India’s April Fuel Consumption Rises by 6.1% Year-on-Year

(By Business Standard, 07 May 2024)

India’s fuel consumption rose by 6.1% year-on-year in April, as per the latest data from the Petroleum Planning and Analysis Cell. “The rise in total fuel consumption in April can be attributed to the increased activity in the run up to elections across the country,” said Prashant Vasisht, vice president and co-head, corporate ratings at ICRA.

India’s Russian Oil Imports Surge as Moscow Pushes More Oil Overseas

(By Indian Express, 03 May 2024)

Indian refiners imported a total of 1.96 mbpd of Russian crude oil in April, the highest since July of last year, and nearly 19% higher than volumes imported in March, as per provisional ship-tracking data from commodity market analytics firm Kpler. Russia accounted for 40.3% of the total 4.86 mbpd of crude oil imported into India in April.

Govt Brings Down Windfall Tax on Crude oil to INR8,400/tonne

(By Financial Express, 02 May 2024)

The Centre has cut the windfall tax levied in the form of Special Additional Excise Duty (SAED) on domestically produced crude to Rs 8,400 per tonne from Rs 9,600 per tonne with immediate effect. As per the notification, the windfall tax, however, remains unchanged at nil for diesel and aviation fuel turbines. On April 16, the government had raised the windfall tax to Rs 9,600 a tonne from Rs 6,800.

India Saved USD7.9 billion by Buying More Russian Crude in FY24

(By Times of India, 30 April 2024)

India saved an estimated USD7.9 billion in oil import bill in the 11 months of 2023-24 financial year ended 31 March, compared to USD5.1 billion over the whole of 2022-23 by purchasing higher volumes of Russian crude at deep discounts, as per ICRA Research. The increased savings led to a “compression” of 15-22 basis points in India’s current account deficit-to-GDP ratio in 2023-24.

New Indian Refinery to Be Delayed by Two Years

(By Oil Price, 29 April 2024)

As India is set to become the world’s largest oil demand growth driver in the coming years, Indian state-owned refiner Chennai Petroleum Corporation Limited (CPCL) plans to commission a new refinery two years later than initially planned by 2025. CPCL, a unit of IOC, now aims to complete the construction of a 180,000 bpd refinery by the end of 2027.


China’s Second Batch of Fuel Export Quotas Matches First Allocations

(By Oil Price, 07 May 2024)

China has recently issued 18 million metric tons of fuel export quotas in the second batch of allocations for this year. The volumes in the latest batch include 14 million tons of refined products and 4 million tons of marine fuel, consultancy firms Longzhong and JLC, as well as trade sources, said.  These compare with 19 million tons of total export quotas allocated in the first batch for 2024. 

Gasoline Demand Growth to Slow this Year on EV Growth in China, US

(By Reuters, 06 May 2024)

Global petrol demand growth could halve in 2024, squeezing second-half refinery margins, analysts said, driven by a shift to electric cars in China and the US and a return to normal consumption after last year’s bounce following COVID-19. China, once the world’s driver of gasoline demand, is expected to account for more than half of all EV sales this year, the International Energy Agency has said.

South Korea:

Tankers Needed as Hyundai Oilbank Wins Exports Deals to US and Guam

(By Tradewinds, 06 May 2024)

South Korean oil refiner HD Hyundai Oilbank will supply 7.2m barrels of ultra-low sulphur diesel for electricity production in Guam over the next three years. The company said it had struck a deal with Guam Power Authority to provide fuel through trading affiliate Hyundai Corp. This will mark a transition away from heavy fuel oil for power generation in Guam.


Saudi Arabia, UAE Supplied 85% of Japan’s Crude Oil in March

(By Arab News, 01 May 2024)

Saudi Arabia and the UAE provided 85% of Japan’s total crude oil needs in March, according to the Agency of Natural Resources and Energy of the nation’s Ministry of Economy, Trade and Industry. A further 10% of Japan’s needs were from Arab sources including Kuwait, Qatar, Oman and the Neutral Zone. This means that the Arab region provided nearly 95% of Japan’s needs.


Market Expects Crude Oil Prices to Recover; Adopt Buy-on-Dip Strategy

(By Business Standard, 07 May 2024)

OPEC is expected to keep the supply tight to maintain the price stability at a time when demand is seen weakening. Saudi Arabia has raised the June official selling price of its flagship Arab Light grade by 90 cents to USd2.90 a barrel for above benchmark prices. On the other hand, some risk continued to prevail in the Middle East as Israel’s military has begun moving civilians out of Rafah with an evacuation order.

Asian Markets Eye Upturn in Oil Output Post Angola’s OPEC Exit: S&P Global

(By Economic Times, 06 May 2024)

Amid Angola’s departure from OPEC, Asian oil buyers are eyeing a significant surge in production, with output rebounding from a four-month low in February, said S&P Global Commodity Insights. Major importers such as China, South Korea, Thailand, and India anticipate heightened flexibility in sourcing as Angola ramps up its oil supply.

What’s Behind Saudi Arabia’s Increase in Crude Oil Prices for Asian Market?

(By Oil Price, 06 May 2024)

The increase is in line with Saudi Arabia’s efforts to keep prices up amid a fading risk of war in the Middle East. Concerns about China’s economy and significant crude supplies from the United States and other non-OPEC countries are additionally keeping prices down, according to Bloomberg. The United States increased oil production significantly in 2023 in response to high fuel prices.

Asia’s Crude Oil Imports Slip in April, Trail OPEC Forecasts

(By Reuters, 02 May 2024)

Asia’s imports of crude oil slipped slightly in April from March, as increased arrivals in China failed to offset lower purchases elsewhere in the world’s top-importing region. April imports were 26.89 mbpd, down from 27.33 mbpd in March and roughly in line with February’s 26.68 mbpd, according to data compiled by LSEG Oil Research.

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