India:
India’s Russian Oil Imports at 10-month High in May, Supplies from Saudi Arabia Dwindle
(By Indian Express, 02 June 2024)
Indian refiners imported a total of 1.96 million barrels per day (bpd) of Russian crude oil in May, the highest since July of last year, and nearly 3% higher than volumes imported in April, as per provisional ship-tracking data from Kpler. May also marked the fifth consecutive month of growth in India’s Russian oil imports.
Oil Marketing Companies Reduce Price of Commercial Cylinder and Jet Fuel
(By New Indian Express, 01 June 2024)
As per the price notifications, a 19-kg commercial LPG used by hotels and restaurants was cut by Rs 69 to Rs 1,676 in Delhi, while Aviation Turbine Fuel was cut by Rs. 6,673.87 per kilolitre, or 6.5%, to Rs. 94,969.01 per kl in the national capital. The reduction follows a marginal 0.7% (Rs 749.25 per kl) increase on 1 May. The revised price will be applicable from 1 June, 2024.
India’s Crude Oil Imports Soar 7% YoY in April, Net Oil & Gas Import Bill Hits $12.3 billion-Mark
(By Mint, 24 May 2024)
India’s crude oil imports increased by 7% YoY in April 2024 and the net import bill for oil and gas hit $12.3 billion, compared to $10.1 billion in the corresponding period last year. Out of this, the crude oil imports constituted $13.0 billion, LNG imports were at $1.1 billion and exports were $ 3.7 billion during April 2024, as per PPAC.
India’s Use of Crude Tankers to Export Diesel Slows in May
(By Economic Times, 23 May 2024)
Indian refiners’ use of crude oil vessels to ship refined fuels such as diesel to key European markets has diminished in May after volumes neared two-year high levels last month. That is because rising inventories in the Antwerp-Rotterdam-Amsterdam region and shaky east-west diesel price spreads undermine the case for sellers to ship large volumes of the industrial fuel West.
Oil Minister Puri Advocates for Long-Term Crude Oil Discounts from Russia
(By Business Line, 22 May 2024)
India’s Oil Minister H S Puri said that there is no reason why domestic refiners should not want to negotiate a “good discount” on a long-term basis with Russia, emphasising that India holds a key card of high crude oil consumption. India processed 5.24 million barrels per day (mbpd) on a provisional basis in FY24, compared to 5.13 mbpd in FY23 and 4.85 mbpd in FY22.
China:
Rongsheng Becomes Next Chinese Refiner to Buy Trans Mountain Oil
(By Oil Price, 03 June 2024)
Rongsheng Petrochemical has bought its first-ever crude cargo via the Trans Mountain Expansion Project, which entered into service in early May, through a tender from TotalEnergies. The expanded Trans Mountain pipeline is tripling the capacity of the original pipeline to 890,000 barrels per day (bpd) from 300,000 bpd to carry crude from Alberta’s oil sands to British Columbia on the Pacific Coast.
Signs of Weakening Oil Demand in China Multiply
(By Oil Price, 29 May 2024)
Signs of emerging weakness in crude oil demand in the world’s biggest importer of the commodity, China, are casting a shadow over the success of OPEC+ to prop up prices. According to a Bloomberg report, the decline in the housing market is one sign of this weakness, with eleven consecutive months of declines in home sales. This has in turn affected construction activity.
China Oil Demand to Peak Before 2027, Says Sinopec
(By Oil Price, 29 May 2024)
Sinopec expects oil demand in China to peak before 2027, according to its 2024 edition of the China Energy Outlook 2060. In its previous outlook last year, Sinopec had said that China’s oil consumption is expected to peak at some point later this decade, between 2026 and 2030, due to an acceleration of EV adoption.
South Korea:
South Korea Unlikely to Change Major Crude Importer Status Despite Potential Oil Discovery
(By S&P Global, 04 June 2024)
South Korea is stepping up efforts to rely less on imports for the nation’s crude oil needs with vast offshore oil and gas potential in the east coast region, but materializing upstream production could be extremely difficult owing to rigorous tests, ample time and hefty finances needed. The government has recently approved a plan to conduct exploratory drillings off the city of Pohang.
Japan:
Saudi Crown Prince Emphasizes Kingdom’s Commitment to Stable Oil Supplies to Japan
(By Aawsat, 22 May 2024)
Prince Mohammed bin Salman underscored Kingdom’s commitment to maintaining the supply of crude oil to Japan, pointing to Riyadh’s desire to boost cooperation with Tokyo in other fields, including clean energy. He made his remarks during a video call with Japanese Prime Minister Fumio Kishida on the sidelines of the Saudi Arabia-Japan Vision 2030 Forum.
International:
OPEC+ Extends Deep Oil Production Cuts into 2025
(By Nikkei Asia, 03 June 2024)
OPEC+ members are currently cutting output by a total of 5.86 million barrels per day (bpd). Those include 3.66 million bpd of cuts, which were due to expire at the end of 2024, and voluntary cuts of 2.2 million bpd, expiring at the end of June 2024. OPEC+ has agreed to extend the cuts of 3.66 million bpd until the end of 2025 and prolong the cuts of 2.2 million bpd until the end of September 2024.
Asia’s Crude Oil Imports Hit 12-month High, But it’s Because of India, Not China
(By Reuters, 30 May 2024)
Asia’s imports of crude oil rose to the highest in 12 months in May, with the strength being driven by India as the country is on track to see record arrivals of 5.26 million bpd, up 710,000 bpd from April’s 4.55 million bpd. Overall, the region is expected to have arrivals of 27.81 million barrels per day, up from 26.89 million bpd in April.
Goldman Sachs: Oil Demand to Grow Until 2034
(By Oil Price, 27 May 2024)
Global oil demand is set to grow for at least another decade, according to Goldman Sachs, who see slowing momentum of EV sales keeping oil product demand robust until 2034. Analysts at the bank raised their forecast of oil demand in 2030 to 108.5 million barrels per day (mbpd) from 106 mbpd previously expected. The bank now expects global oil demand to peak in 2034, at around 110 mbpd.
