Asia Oil Newsletter (AON)


Not Asked India to Reduce Oil Import from Russia: US

(By The Indian Express, 04 April 2024)

The US has clarified that Washington has not requested India to reduce the volume of its oil imports from Russia. However, they said, permitting an unrestricted Russian oil trade remains “unacceptable” and emphasized that the western price cap on Moscow’s petroleum products is designed to compel Russia to continue selling oil at lower prices than it would otherwise obtain.

Crude at USD90/bbl Could Push Indian OMCs to Losses

(By Financial Express, 04 April 2024)

If crude prices touch USD90 per barrel, then diesel can see heavy under recoveries, marking losses, according to an analysis by ICRA. Petrol, however, is likely to be just about positive. Nomura had earlier noted that diesel margins of OMCs have declined to below normative levels to INR0.9 per litre and gasoline margins have declined to below normative levels of INR1.7 per litre after the auto fuel price cut.

Oil India to Open Numaligarh Refinery by 2025 as Price Concerns Persist

(By Offshore Technology, 03 April 2024)

Oil India will bring online its planned Numaligarh oil refinery in the north-eastern Indian state of Assam by December 2025, as per company’s chairman. The company will set up a trading desk for the 180,000 barrels per day (bpd) refinery, which will process 110,000bpd of imported crude. He added that the remaining refining capacity of 70,000bpd will be met with domestically produced oil.

India Aims for First SPR with a Private Company by 2029/30

(By Yahoo News, 03 April 2024)

India plans to build two new SPRs – the first a 18.3 million barrels cavern at Padur in southern Karnataka state, and then a 29.3 million barrels SPR in eastern Odisha state – with private partners allowed to trade all of the oil locally. The bidder requiring the lowest federal financing or paying the highest premium for the 60-year lease would be awarded the rights for the SPR

IOC Set to Tap Spot Oil Market as Russian Term Deal Lapses

(By Business Standard, 02 April 2024)

Rosneft and IOC have yet to renew an oil supply deal that expired in March as they have been unable to agree on price and volumes. Rosneft had offered to supply a total of up to 4 million barrels, significantly lower than what Indian refiners had together sought. Moreover. Rosneft had offered a discount of USD3-3.50/bbl to Dubai quotes, similar to levels available in spot markets.


China Pips India in Buying Sea-Borne Russian Crude

(By Times of India, 04 April 2024)

China imported 1.82 mmbd of Russian crude by sea in March, a third more than India’s 1.36 mmbd. Russian Sokol cargoes, which were previously rejected by Indian refiners due to concerns of the cargoes being loaded on sanctioned vessels, were sold at heavy discounts to Chinese refiners, which explains the sharp rise in volumes into China, as per Vortexa.

Crude Oil Futures Climb Up as China’s Manufacturing PMI Shows Growth in March

(By Business Line, 01 April 2024)

The Caixin China General Manufacturing PMI increased to 51.1 in March against 50.9 in February. New orders from domestic and foreign markets helped boost this growth in March. The month of March is the fifth straight month of growth. Input prices witnessed a marginal decline due to the lower raw material costs.

Petrochemicals are Driving 90% of China’s Oil Demand Growth

(By Oil Price, 01 April 2024)

As per IEA, 90% of China’s increased oil demand from 2021 to 2024 comes from chemical feedstocks like LPG, ethane, and naphtha. IEA further notes that between 2019 and 2024, additional Chinese production capacity for ethylene and propylene will exceed the combined current capacities of Europe, Japan, and South Korea.


Japan Imported 96% of its Oil from Arab Countries in February 2024

(By Arab News, 30 March 2024)

Japan imported 71 million barrels of oil in February and 96.7% of that (68.74 barrels), came from the five Arab countries, namely UAE, Saudi Arabia, Kuwait, Qatar, and Oman and, as well as the Neutral Zone. The UAE share amounted to 31.3 barrels (44.1%) whereas Saudi provided slightly less than the previous month at roughly 27 million barrels (38%).

South Korea:

S-Oil Obtains Certifications for Sustainable Aviation Fuel Production in South Korea

(By Yonhap News Agency, 04 April 2024)

S-Oil has obtained certifications to domestically produce sustainable aviation fuel (SAF) for the first time among local refiners. The company has acquired three types of International Sustainability & Carbon Certification (ISCC) certifications, required to produce SAF, from the global certification body Control Union.

South Korea Stops Importing Kazakh Oil Over Red Sea Ship Attacks

(By The Times of Central Asia, 03 April 2024)

South Korea has suspended crude oil imports from Kazakhstan via the Caspian Pipeline Consortium (CPC), which yields the CPC Blend of crude oil made with Kazakh oil. No deliveries were made in February due to the Houthi attacks on ships in the Red Sea. Against this backdrop, South Korea decided instead to increase purchases of WTI crude from the US.


OPEC+ Gets Oil Price to Its Sweet Spot, the Trick is Keeping it There

(By Reuters, 04 April 2024)

Crude oil prices have rallied in recent months, with benchmark Brent futures hitting a six-month high and currently hovering around USD90 per barrel. With the price now at that level, the trick for OPEC+ is getting USD90 per barrel to act as an anchor around which the price can trade with the usual daily volatility, which is often driven by news headlines on events.

BofA Hikes 2024 Oil Forecasts on Tighter Supply, Geopolitical Risks

(By Economic Times, 03 April 2024)

Bank of America (BofA) Global Research has raised its 2024 Brent and WTI oil price forecasts, citing escalating geopolitical tensions and the OPEC+ producer group maintaining supply curbs. The bank now expects Brent and WTI crude prices this year to average USD86 and USD81 per barrel respectively, with prices of both peaking around USD95 per barrel during the summer.

Global Oil Price Hits Seven-Month High as Middle East Tensions Rise

(By CNN, 02 April 2024)

The global price of oil rose to its highest level in seven months, propelled, in part, by concerns that mounting tensions in the Middle East could crimp supply. The bombing of Iran’s embassy in Damascus once again raises the specter that the war between Israel and Hamas in Gaza could spill over into a regional conflict. This threatens a further rise in gasoline prices in the United States and elsewhere.

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