Asia Oil Newsletter (AON)


India Stops Taking Russian Oil Delivered on Sovcomflot Tankers

(By The Edge Singapore, 22 March 2024)

All of India’s refiners are now refusing to take Russian crude carried on PJSC Sovcomflot tankers due to US sanctions. Private and state-run processors including the biggest, IOC, have stopped taking cargoes if they’re on Sovcomflot tankers. Refiners are scrutinizing the ownership of each ship to make sure they’re not affiliated with the company, or other sanctioned group.

Small Cut in Fuel Price A Big Hit to OMC Revenue: Analysts

(By Economic Times, 17 March 2024)

The government had announced the price cut with effect from March 15, a day before general election dates were announced. Although small on headline, a INR 2 per litre cut will reduce OMC revenue/ ebitda by about USD3.7bn annualised, This is the first fuel revision by the OMCs in nearly two years—the last was on April 6, 2022.

Despite Shrinking Discount Russian Crude Flow to India May Continue

(By Business Standard, 15 March 2024)

The Import volumes have dipped in recent months owing to possible problems in settling payments with Russian suppliers. The import of Russian Sokol grade crude was most impacted. However, after months of falling imports, the crude grade has again started landing in India. As per Vortexa, overall Russian shipments to India rose to 1.41 mmbd in February compared to 1.2 mmbd in January.

Private Oil Companies Grab Bigger Share of Aviation Fuel Market

(By Economic Times, 14 March 2024)

Private players are grabbing a larger share of India’s growing aviation fuel business as they expand their supply networks and stitch more deals with airlines. Reliance-BP and Shell-MRPL, the two private sector joint ventures, expanded their market share to 9% in February from 5.5% in the same month last year. Their share was 6% in February 2022.


China Boosts Crude Oil Stockpiling, But Higher Prices May See Import Pullback

(By Reuters, 21 March 2024)

China boosted inventories of crude oil in the first two months of the year, a move that gives refiners options to trim imports in coming months if they deem prices have risen too high. A total of 570,000 bpd were added to strategic or commercial inventories in the January-February period. Stock build-up also undermines the market narrative that oil demand in the world’s biggest crude importer is strengthening.

Sinochem Buys First Crude Cargo From Canadian Pipeline

(By Oil Price, 20 March 2024)

The cargo is of 550,000 barrels of heavy crude produced by Suncor and the grade has similar properties to Iraq’s Basrah crude. The Canadian oil industry has eagerly awaited the completion of the Trans Mountain expansion, which would add 590,000 bpd to capacity, opening up international markets to Canadian crude from the country’s west coast.

China Discovers Over 100 Million Tonnes Oil Field in Bohai Sea

(By AA Energy, 19 March 2024)

China discovered an oilfield in the Bohai Sea with proven oil reserves of 104 million tonnes. China National Offshore Oil Corporation (CNOOC) reported that the discovery was made at the Qinhuangdao 27-3 oilfield. CNOOC aims to produce 700 to 720 million barrels of oil equivalent in 2024, 69% of which will derive from China and the remainder from overseas operations.

South Korea:

Industry Minister Asks Petroleum Firms to Avoid Price Hike

(By The Korea Hearld, 14 March 2024)

Industry Minister Ahn Duk-geun has asked petroleum companies to refrain from increasing the prices of their products amid lingering inflation and external uncertainties. Last month, South Korea extended a tax cut on fuel consumption by an additional two months through April in an effort to curb inflation and ease economic burdens on the people.


Morgan Stanley Sees Brent Crude Prices Hitting USD90/barrel This Summer

(By Mint, 20 March 2024)

Morgan Stanley has revised its Brent oil price projections upward by USD10 per barrel to USD90 for the third quarter of 2024. This adjustment is attributed to tighter supply and demand dynamics resulting from OPEC+ commitments and Russia’s decision to curtail oil production following recent drone attacks on its refineries.

Global Oil Demand to Grow Amid Red Sea Shipping Disruptions: IEA

(By Aljazeera, 14 March 2024)

In its monthly oil report, IEA made a 110,000 bpd upward revision of global oil demand from its previous forecast as Red Sea attacks delay supplies. Longer routes have boosted fuel demand in bunkering operations. The IEA said world oil demand is now forecast to increase by 1.3 mmbd this year though it will be lower than 2.3 mmbd growth seen last year.

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