India:
India Cuts Windfall Tax on Petroleum Crude
(By Economic Times, 14 June 2024)
The Indian government has cut the windfall tax on petroleum crude to INR 3,250 ($38.90) per metric ton from INR 5,200 rupees, effective 15 June. The tax, which is revised every fortnight, remained unchanged at zero for diesel and aviation turbine fuel. India on 1 June cut the windfall tax on petroleum crude to INR 5,200 rupees per metric ton from INR 5,700.
Reliance Favors Tying of Pipeline Tariff to Rail Freight Rates
(By Economic Times, 13 June 2024)
Reliance Industries informed the downstream regulator that it preferred the petroleum products pipeline tariff to be tied to railway freight rates rather than it being increased annually. During a stakeholder meeting about draft regulations on the determination of pipeline transportation tariff for petroleum and petroleum products, Reliance expressed its opinions.
India to Lead World in Fuel Demand Growth: IEA
(By Economic Times, 12 June 2024)
India’s oil demand is projected to rise from 5.4 million barrels per day (bpd) in 2023 to 6.7 million bpd by 2030, a growth of 3.2 per cent or 1.3 million bpd. The growth will be dominated by rising demand for road transport fuels, with a comparatively small role for petrochemical feedstocks. Moreover, India’s oil demand rising by 900,000 bpd between 2025 and 2030 will be well ahead of China’s 570,000 bpd.
BPCL Planning to Set Up New Refinery Worth INR 50,000 Crore
(By Business Standard, 11 June 2024)
BPCL is planning to set up a new 12 million metric tonnes per annum (MMTPA) refinery in the country. The company will invest around INR 50,000 crore in the project and is currently assessing locations in three states, Andhra Pradesh, Uttar Pradesh, and Gujarat. Last month, BPCL Chairman announced that the company plans to increase its refining capacity to 45 MMTPA by FY29 from current 36 MMTPA.
New Govt Not in Favor to Sell Stake in OMCs, Says Oil Minister Puri
(By Economic Times, 11 June 2024)
The Centre is not in favor of divesting the government’s stake in oil marketing companies, as per Oil Minister Hardeep Singh Puri. In addition, the Centre will make efforts to bring petrol, diesel and natural gas under the ambit of Goods and Services Tax (GST). Petrol and diesel are currently not included under the GST. Each state sets its own rates for petrol and diesel.
India Oil Signs JV Agreement with Sun Mobility, Singapore
(By Business Standard, 05 June 2024)
The JV will carry out the business of deployment and operation of Battery-as-a-Service solution (BAAS) for two-wheeler, three-wheeler, and four-wheeler vehicles and retrofit to convert to Small Format Electric Vehicle (SFEV) using docks and batteries to enable their functioning as electric vehicles for SFEV-BAAS over a network of swap points including IndianOil Retail Outlets.
China:
China Continues to Lift Crude Oil Stockpiling Amid Weak Refinery Runs
(By Reuters, 17 June 2024)
Over the first five months of 2024, China boosted stockpiles by 790,000 bpd from the same period in 2023, and the pace of inventory builds is accelerating, rising from 700,000 bpd in the first four months of the year. The surge in crude flowing into storage, coupled with a decline in oil imports in the first five months of the year, undermines expectations that China’s crude demand will grow strongly in 2024.
Is OPEC Too Bullish on China’s Oil Demand?
(By Oil Price, 11 June 2024)
China’s crude oil imports declined by 130 mmbd in the first five months of 2024 compared to the previous year, raising concerns about slowing demand. The slowdown in China’s oil demand growth is likely due to factors such as the real estate sector crunch and developments in the construction and auto sectors. OPEC is projecting a demand growth of 700 mmbd for China in 2024.
May Oil Product Imports Drop 22% from Historic High in April
(By S&P Global, 07 June 2024)
China’s oil product imports dropped 21.5% to 4.45 million mt in May from a historic high in April, data from the General Administration of Customs showed, as independent refineries cut feedstock fuel oil purchases. Independent refineries’ fuel oil imports slumped 45.4% to 1.1 million mt in May from an all-time high of 2 million mt in April, with the trend likely to continue in June amid rising import cost.
South Korea:
KPC and KNOC Ink MoU on Strategic Oil Storage
(By Zawya, 13 June 2024)
KPC signed a MoU with Korea National Oil Corporation (KNOC) to store four million oil barrels in South Korean Ulsan city. KPC mentioned that the MoU is in application of corporation strategy on storing oil near vital markets to guarantee Kuwaiti oil supply in Asian continent. South Korea is Kuwait’s second largest receiver of Kuwaiti oil with 19% of total oil exports.
South Korean Refiners Assess Canadian Crude Import Economics Post-TMX Expansion
(By S&P Global, 12 June 2024)
South Korean refiners are evaluating the import and refining economics of Canadian crude following the recent expansion of the Trans Mountain Expansion pipeline, but the Asian end-users’ preference for more lighter crude may keep the Vancouver-South Korea trade flows limited for now. South Korean refiners current strategy is to maximize output of middle distillates and high-end fuels from lighter crude.
Oil Exploration Firm: South Korea’s Offshore Prospects Hold Great Potential
(By Oil Price, 07 June 2024)
The oil and gas exploration prospects offshore South Korea have great potential and a future discovery is “highly prospective,” according to the founder of a petroleum exploration firm that advises the Asian country’s government on the drilling potential off its east coast. The area could contain 14 billion barrels of oil and gas, as per country’s President.
Japan:
Jet Fuel Shortage Hits Japan Amid Tourism Boom
(By Oil Price, 11 June 2024)
Airlines in Japan are struggling to obtain enough jet fuel while some overseas air carriers have dropped plans to increase the number of flights to Japan due to a shortage of the fuel amid a booming tourist season. Eneos Holdings, Japan’s top refiner, has been overwhelmed by airline demand for more supply and is currently working with the government to boost the availability of jet fuel in the country.
Singapore:
Singapore to Receive its First Fuel Oil Cargo Exported from Nigeria’s Dangote Refinery
(By Hindustan Times, 12 Jun 2024)
Singapore will be receiving this week its first low-sulphur straight-run fuel oil cargo exported from Nigeria’s new Dangote refinery. This marks a new trade flow from the newly-commissioned refinery to Asia, a region that is structurally short on low-sulphur fuel oil required to meet demand for ship refuelling at the world’s largest bunker hub Singapore.
International:
(By IEA, 12 June 2024)
New IEA medium-term outlook sees comfortably supplied oil markets to 2030, though unwavering focus on energy security will remain crucial as powerful forces transform sector. Growth in the world’s demand for oil is expected to slow in the coming years as energy transitions advance. At the same time, global oil production is set to ramp up, easing market strains and pushing spare capacity.
The Asia Market for High-Sulfur Fuel Oil Will Take a Break After a Strong Rally
(By Marine Link, 10 June 2024)
Despite a rally on the high-sulphur fuel (HSFO) markets of Asia, boosted by lower Middle East oil exports and OPEC+’s cuts, it is likely to slow down as Russian exports will remain elevated, and ease supply. The tighter supply of HSFO has increased the premiums for spot HSFO and the refining margins to nine-month highs in Asia, increasing costs for shippers and utilities that use this fuel.
