NEW DELHI: India’s crude oil imports fell in June to their lowest degree since February 2015, whereas year-on-year refined product exports declined for the primary time in virtually a 12 months, authorities knowledge confirmed on Friday.
Crude oil imports final month dropped about 19% from a 12 months earlier to 13.68 million tonnes, down for a 3rd straight month, knowledge from the Petroleum Planning and Evaluation Cell (PPAC) of the ministry of petroleum & pure fuel confirmed.
“That is doubtless pushed by not but totally recovered oil demand and expectation that it would take longer to have Indian oil demand rising strongly once more,” mentioned UBS analyst Giovanni Staunovo.
“Along with larger crude imports at the beginning of the 12 months, crude tanks are nonetheless properly stuffed, decreasing the necessity to import extra crude for now.”
Gas demand in India, the world’s third-biggest oil importer and client, fell 7.8% in June in contrast with a 12 months earlier as surging coronavirus instances and rising retail costs hammered demand.
“India’s gasoline demand restoration will proceed to stall as coronavirus instances proceed to skyrocket,” mentioned OANDA senior market analyst Edward Moya.
India’s tally of COVID-19 instances jumped by a file 55,078 on Friday to 1.64 million in India.
Oil product exports fell about 6%, their first year-on-year fall since August 2019, primarily pushed by declining diesel exports, which slid to their lowest since April final 12 months.
Shipments of diesel additionally registered their first year-on-year decline since August final 12 months, falling 5.7% to 2.09 million tonnes.
“To comprise the rising inventories, some refineries are actually planning to conduct upkeep and shutdowns in late third quarter of 2020, which can doubtless hold exports in test,” mentioned Aaron Cheong, oil product analyst at consultancy Power Elements.
The nation’s prime refiner, Indian Oil Corp, mentioned it might proceed to function its refineries beneath capability in 2020-21 because it anticipated native and abroad gasoline demand to stay subdued.