Asia Oil Newsletter (AON)


Navigating Uncharted Waters: How the Iran-Israel Conflict Could Impact India’s Oil Economy

(By Economic Times, 15 April 2024)

The ongoing conflict has stoked fears of supply disruptions or blockades in key shipping routes like the Strait of Hormuz, through which a significant portion of the world’s oil passes. For India, which counts oil as a major import, even a small spike in prices can have outsized effects on its trade deficit and economic health.

India’s Oil Demand to Rise by 0.2 MMBD in 2024: OPEC

(By The New Indian Express , 13 April 2024)

As per the OPEC monthly report, diesel is projected to be the driver of India’s oil demand growth, supported mostly by agriculture, construction, and manufacturing activities. Moreover, annual traditional festivities are expected to support transportation activity and boost petrol, while the ongoing air travel recovery is expected to bolster jet or kerosene demand.

India Among Top Buyers of Russian Oil Products in February

(By Times of India, 10 April 2024)

In February 2024, direct shipments of fuel oil and VGO from Russian ports to India surged to 0.7 million metric tons, up from 0.46 million tons in January, according to Reuters calculations based on LSEG data. Similarly, deliveries to China reached 0.7 million tons, while Singapore and Malaysia received 0.63 million tons and approximately 120,000 tons, respectively.

India’s Fuel Demand Scales Record High in 2023-24

(By Zee Biz, 08 April 2024)

India’s consumption of petroleum products such as diesel, petrol, LPG and bitumen went up by 5% to touch a record level of 233.276 million tons during the financial year that ended on 31 March, 2024, according to data compiled by the Ministry of Petroleum and Natural Gas. The consumption of petroleum goods in 2022-2023 stood at 223.021 million tons.

Haldia Petchem Plans USD10 Bn Oil-to-Chemical Project in South India

(By Economic Times, 02 April 2024)

The Chatterjee Group (TCG) is in talks with local and global companies to partner with its majority-owned petrochemical firm Haldia Petrochemicals Ltd (HPL) to build a more than USD10 Bn project in southern India. The private equity firm plans to build the oil-to-chemical project, capable of producing 3.5 mtpa of ethylene and propylene, at Cuddalore in Tamil Nadu by 2028 to 2029.


Niger and China Sign Crude Oil MoU worth USD 400 Mn

(By Economic Times, 15 April 2024)

Niger has signed a MoU with Chinese state-owned oil giant CNPC worth USD 400 Mn linked to the sale of crude oil from its Agadem oilfield. An export pipeline project backed by CNPC subsidiary PetroChina was officially launched last November, linking the Agadem oilfield to the port of Cotonou in neighbouring Benin.

China’s Crude Oil Imports Dropped by 6% Year-Over-Year in March

(By Oil Price, 12 April 2024)

Chinese imports of crude oil fell in March by 6% compared to the same month last year as first-quarter crude imports were stable year-over-year amid high volumes of Russian crude flowing to China. China imported 49.05 million metric tons of crude oil last month or 11.55 mmbd as per data from the Chinese General Administration of Customs.

South Korea:

South Korea Enacts Additional Fuel Tax Relief Amid Middle Eastern Tensions

(By YTECH, 15 April 2024)

As volatile conditions escalate in the Middle East, South Korea’s administration has announced further economic measures to alleviate the potential financial strain on its citizens. Key among these steps is the extension of tax breaks on fuel consumption for an extra two months. The Finance Minister identified the volatile oil prices and international conflict as underlying factors necessitating government intervention.


Global Oil Market Likely to be ‘Extremely Tight’, Says Citadel

(By Financial Times, 08 April 2024)

Oil markets are set to become “extremely tight” in the second half of this year, according to hedge fund giant Citadel, as OEPC+’s control of the market allows it to keep prices high. OPEC+’s position has been strengthened by the “level of discipline” shown by US producers, which have opted against trying to take advantage of high prices by boosting production.

Crude Oil Prices Can Hit USD 100 Per Barrel in 2024 if OPEC Maintains Cuts: Russel Hardy

(By Economic Times, 10 April 2024)

According to S&P Global Commodity Insights, Russell Hardy, the CEO of Vitol, delivered this forecast, indicating that spot crude prices could surge to USD 100/BBL later this year if OPEC+ continues its production discipline and persists in withholding crude from global markets. Since late 2022, OPEC+ has implemented voluntary production cuts, removing approximately 5 mmbd of crude from the market.

USD100/BBL Oil Market Chatter Resurfaces But Does OPEC+ Really Want It?

(By Financial Times, 09 April 2024)

Demand destruction in its wake is something that OPEC+ will not want. A range between USD80-90/BBL might well be what it can work with. So, all things considered, should the oil price inch closer to USD100/BBL driven by demand in a tight market, the producers’ group would likely want it to stay near or somewhat below the level and may reverse its cuts to pump more.

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