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Crude oil imports in June lowest in over 5 years; exports dip

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(Consultant picture) 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 information confirmed on Friday. Crude oil […]

(Consultant picture)

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 information 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, information from the Petroleum Planning and Evaluation Cell (PPAC) of the ministry of petroleum & pure gasoline confirmed.
“That is possible pushed by not but absolutely recovered oil demand and expectation that it’d take longer to have Indian oil demand rising strongly once more,” mentioned UBS analyst Giovanni Staunovo.
“Along with increased crude imports initially of the 12 months, crude tanks are nonetheless nicely crammed, 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 gas 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 include the rising inventories, some refineries are actually planning to conduct upkeep and shutdowns in late third quarter of 2020, which can possible maintain exports in test,” mentioned Aaron Cheong, oil product analyst at consultancy Power Points.
The nation’s prime refiner, Indian Oil Corp, mentioned it could proceed to function its refineries under capability in 2020-21 because it anticipated native and abroad gas demand to stay subdued.

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