Asia Oil Newsletter (AON)

India:

India’s Crude Oil Imports Hit Record High in April 2024 Amid Rising Demand

(By The Hindu, 20 May 2024)

India’s crude oil imports during April 2024 rose to its third highest level on record as refiners topped up on supplies to meet the domestic demand for auto fuels as well as for export opportunities in the northern hemisphere ahead of the summer travel season. India imported 21.4 million tonnes of crude oil last month, a growth of 3% M-o-M and 7% Y-o-Y.

Nayara Energy Reports 48% Jump in Petrol Sales in Q1, Exports Drop

(By Business Standard, 19 May 2024)

Nayara Energy posted a 48% jump in petrol sales in the first quarter of the 2024 calendar year, while exports dropped as the firm met rising local demand for fuel. Petrol sold locally rose to 0.89 million tonnes in the first quarter of 2024 from 0.60 million tonnes in January-March 2023. Diesel sales were almost flat at 1.7 million tonnes.

India’s Oil Demand to Grow 4% to 5.8 mmbd in 2025: OPEC

(By Financial Express, 15 May 2024)

India’s oil demand is expected to grow to 5.80 mmbd in 2025, up 4.1% from the 5.57 mmbd projected in 2024, OPEC said in its report. It highlighted that the growing demand will be supported by increased consumption of gasoline and other petroleum products on the back of growing economic activity. In the current year 2024 itself, the country is guided for a healthy oil demand growth of 228,000 mbd.

India Oil Demand Driven by Consumers Rather than Industry

(By Energy World, 15 May 2024)

Two-thirds of India’s oil consumption is attributable to three products diesel (39%), gasoline (16%) and LPG (13%). The fastest growth has come from gasoline, rising at an average rate of 8% per year over the last decade, as household incomes have driven a rapid increase in motorcycle and car ownership. The number of registered motorcycles and passenger cars more than doubled in the decade up to 2020.

Refinery Capacity in India Set for 24 MTPA Increase by FY26, Driven by Stable Demand

(By Energy World, 15 May 2024)

India Ratings and Research (Ind-Ra) has projected a significant increase in India’s refinery capacity, expecting an addition of 24 million tonnes per annum (MTPA) by FY26, supported by stable domestic demand for petroleum products. It noted that OMCs have been effective in managing retail prices amidst fluctuating crude prices and spreads to maintain stable margins.

IOCL Sets INR31,000 Crore Capex for FY25 to Expand Business, Achieve Net-Zero Status

(By Money Control, 13 May 2024)

Indian Oil Corporation Limited (IOCL) has planned a capital expenditure of INR 31,000 crore, including equity investment in joint ventures and subsidiaries, for the financial year 2024-25. On 30 April, IOCL’s board approved the implementation of 1 GW installed capacity of renewal energy projects, comprising standalone ground-mounted solar or standalone onshore wind or wind-solar hybrid projects.

China:

Russia was China’s Top Oil Supplier for Twelfth Month in April

(By The Hindu, 21 May 2024)

Russia was China’s top oil supplier in April for a 12th month, with volumes rising 30% from a year earlier, as refiners continued to cash in on discounted shipments, while supplies from Saudi Arabia fell a quarter on higher prices. China’s crude-oil imports from Russia, which include supplies sent via pipelines and the sea, were 2.25 mbpd, according to data from the General Administration of Customs.

China Boosts Crude Oil Storage Amid Soft Refinery Processing

(By Reuters, 20 May 2024)

The pace at which crude oil flowed into China’s stockpiles increased in April as slower refinery processing outweighed a decline in imports. A total of 830,000 bpd was added to China’s commercial or strategic stockpiles in April, up from 790,000 bpd in March. For the first four months of 2024, the total crude available was 15.26 mbpd, while refinery throughput was 14.56 mbpd, leaving a surplus of 700,000 bpd.

China’s Fuel Oil Imports Soar to Highest Since At Least 2020

(By Reuters, 20 May 2024)

China’s imports of fuel oil rose 10% in April from a year earlier to 2.93 million metric tons, the highest level since at least 2020 according to Reuters’ records. The April imports, which equate to about 620,180 bpd, were 48% higher than in March, as traders brought in more shipments from Venezuela and Iran, according to trading sources familiar with the transactions.

South Korea:

South Korea Oil Refineries Struggle with Low Net Profits

(By Pulse News, 10 May 2024)

The South Korean oil refining industry’s strong operating profits contrast sharply with its reduced net earnings as the crude oil inventory book value surges. The decline in net profit within the oil refining sector is primarily attributed to currency fluctuations, and the dollar’s strength in particular. The industry’s heavy reliance on imported crude oil exposes it to significant exchange rate risks.

Singapore:

Shell’s Singapore Refinery Sale and its Market Significance

(By BIC Magazine, 10 May 2024)

Shell has agreed to sell its Bukom refinery in Singapore to a joint venture of Indonesian chemicals firm PT Chandra Asri and Glencore, culminating a process that began last year. The sale of the complex, which opened in 1961, is part of Shell’s CEO Wael Sawan’s plan to reduce the company’s carbon footprint and to focus on its most profitable businesses.

International:

Oil Shipments at Risk from Rising Sea Levels, Think Tank Warns

(By Economic Times, 21 May 2024)

Melting ice and swelling seas caused by rising temperatures could “unleash unstoppable multi-metre (sea level rise) which will not only sink key oil ports and disrupt global oil trade but also swamp coastal refineries and petrochemical facilities”, the China Water Risk think tank warned in a report. It said that 12 out of the top 15 tanker terminals were expected to be impacted by one metre of sea level rise.

Asian Refiners Diversify Away from Middle Eastern Oil

(By Oil Price, 16 May 2024)

Asian refiners are reducing their intake of Middle Eastern oil in favor of crude from the United States and Brazil. The move comes amid shrinking margins and rising Saudi oil prices even as international benchmarks remain largely range-bound. As per Reuters Asia’s imports of crude from Saudi Arabia fell to 4.88 mmbd in April, which was down from 5.07 mmbd in March.

IEA Widens Gap with OPEC on Crude Oil Demand Projections for 2024

(By Mint, 15 May 2024)

Global oil demand this year will grow by 1.1 mmbd down 140,000 bpd from the previous forecast, largely indicating weak demand in developed OECD nations, said IEA in its monthly report. Meanwhile, OPEC expects that world oil demand will rise by 2.25 mmbd in 2024. The 1.15 mmbd difference is about one per cent of world demand. The two organizations however, are closer in their projections for 2025.

 

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