India:
India Slashes Crude Oil Imports by 5.1%, Ramps Up Processing Amid Global Price Surge
(By Energyworld, 19 July 2024)
In a strategic shift responding to global oil market fluctuations, India has reduced its crude oil imports by 5.1% while boosting its domestic crude oil processing by 3.1% in June 2024 compared to the same month last year. This rise in processing levels was predominantly driven by public sector and joint venture refiners, who collectively processed 15.1 MMT of crude in June.
Indian Oil Capex at INR8,500 Crore in Q1, ONGC’s INR8,000 Crore
(By Economic Times, 19 July 2024)
Indian Oil Corporation spent about INR8,500 Crore and ONGC INR8,000 crore in capital expenditure in the first quarter of this financial year, using up about a quarter of their annual spending budget. State-run oil companies have a combined capex target of INR118,500 crore for 2024-25. They spent INR26,500 crore in April-June quarter, about 22% of their annual target.
Indian Refiners Likely Saved at least USD10.5 Bn by Buying Discounted Russian Oil
(By Indian Express, 11 July 2024)
According to The Indian Express’s analysis of India’s official trade data, Indian refiners likely saved at least USD10.5 Bn in foreign exchange between April 2022 and May 2024 by ramping up purchases of discounted Russian crude oil following the outbreak of the war in Ukraine. With Western buyers cutting oil imports from Russia in the wake Ukraine crisis, Moscow began offering discounts on its crude.
India Plans Ship Building JV Between State-Run Refiners and Shipping Corporation of India
(The Mint, 11 July 2024)
The Union ministry of shipping has proposed a joint venture between state-run Shipping Corporation of India (SCI) and IOC for manufacturing very large oil tankers. India, which has never made an oil tanker, currently has less than 1% share of the global shipbuilding market, which is dominated by China, South Korea and Japan.
Indian Oil Giants, Brazil’s Petrobras in Talks for Long-Term Crude Supply
(By Business Standard, 05 July 2024)
Officials from IOCL, HPCL, and BPCL visited Brazil in April to initiate talks with Petrobras on these lines. These discussions are aimed at securing guaranteed crude oil supplies for the long term. BPCL has already begun testing Brazilian crude in its refineries, and the final contracts are expected to be signed soon.
India Raises Windfall Tax on Petroleum Crude
(By Economic Times, 01 July 2024)
The Indian government has raised the windfall tax on petroleum crude to Rs 6,000 per metric ton from Rs 3,250, with effect from July 2. The tax is reviewed every fortnight. In the previous revision on 15 June, India had cut the windfall tax on petroleum crude to Rs 3,250 per metric ton from Rs 5,200 a fortnight before.
China:
June Oil Products Imports Slump to 20-Month Low of 3 Mil Mt
(By S&P Global, 12 July 2024)
China’s oil products imports slumped 33.2% from May to a 20-month low of 2.97 million mt in June, data from the General Administration of Customs showed July 12, as independent refineries cut feedstock fuel oil purchases. “A few independent refineries cut throughput due to bad refining margins, capping demand for feedstock fuel oil even in the coming months,” said a Shandong-based refinery source.
Oil Demand Growth Slowing, China Consumption Dips: IEA
(By Energy World, 11 July 2024)
Oil consumption in China, long the engine of global oil demand growth, contracted in both April and May the IEA said in its monthly report. The IEA said that the recent drop also “points to an intrinsic slowdown” and that the downswing in the industrial fuels indicates a broader weakness in manufacturing. China is grappling with a real estate debt crisis and weakening consumption.
China’s Factory Slowdown Raises Questions for Global Oil Market
(By Oil Price, 01 July 2024)
Factory activity in China slowed down further last month, with the country’s statistics bureau reporting a PMI reading of 49.5, the lowest in five months. What could aggravate a potential bearish effect, however, is the news that Chinese oil imports during the first half of the year declined by 300,000 barrels daily from the first half of 2023.
South Korea:
South Korea Government Asks Refiners for Efforts to Stabilize Oil Prices
(By Korea Times, 16 July 2024)
The industry ministry has asked the country’s four major oil refiners to refrain from excessive price increases as part of efforts to combat lingering inflation. The government also has plans to release a long-term blueprint for the development of sustainable aviation fuel in the third quarter, which is an environmentally friendly alternative suitable for use in existing aircraft.
Japan:
Jet Fuel Shortage Hits Japan Amid Tourism Boom
(By Energy Terminal, 17 July 2024)
Amid boom in tourism, Japan is facing jet fuel shortage, as the country’s plummeting oil refineries cannot provide adequate fuel to enable return trips for all planes. Authorities at Narita Airport near Tokyo, Japan’s main gateway for international arrivals, said in late June that six airlines had shelved plans to add 57 flights to the weekly schedule.
Singapore:
Two Oil Tankers Are on Fire After Colliding in International Waters
(By Oil Price, 19 Jul 2024)
Two large oil tankers, including one known to have carried oil from Iran and Venezuela, were on fire near Singapore early on Friday, according to Singaporean authorities which said that all crew on both vessels are accounted for. Navigation in the area has not been affected, but authorities are on alert to assist in case of oil spills.
International:
Iran’s New Reformist Regime Spurs Hope of Stable Crude Flows to Asian Buyers
(By S&P Global, 17 July 2024)
While the appointment of reformist politician Masoud Pezeshkian as Iran’s president may not immediately change Washington’s policy on the issue, Asian crude buyers are glimpsing light at the end of the tunnel when it comes to the sanctions. Calling the sanctions a “disaster”, Pezeshkian has questioned the current government for what he said was selling oil below the market price.
Asia’s First Half Crude Oil Imports Decline, Undermines Bullish Forecasts
(By Business Standard, 01 July 2024)
Asia’s imports of crude oil ticked lower in the first half of 2024 from the same period last year, defying expectations that the top-consuming continent would lead global demand growth. Asia imported 27.16 million barrels per day (bpd) of crude in the January to June period, down a modest 130,000 bpd from the 27.29 million bpd in the same period in 2023, according to data compiled by LSEG Oil Research.
Asia’s Refining Margins Stabilise at Soft Levels as Diesel Improves
(By Reuters, 27 June 2024)
The profit margin for Asian refiners turning crude oil into fuels has stabilised at relatively weak levels, but where the money is being made has shifted from gasoline to diesel. Apart from a brief period of weakness at the end of May, which saw the margin drop to a low so far this year of $0.90 a barrel, the crack has been in a fairly narrow range between $2 to $4.50 since early April.
