India’s Feb oil imports at highest since Dec 2020 as refiners boost runs

India’s crude imports rose in February to 4.86 million barrels per day (bpd), their highest since December 2020, preliminary data from trade sources showed, as refiners cranked up runs to meet increasing demand on better refining margins.

Oil imports by Asia’s third-largest economy rose 5% from January and were up 24% from a low base in February 2021, when a refinery at Bathinda in northern India was fully shut for maintenance, data showed.

Indian refiners typically buy oil two months ahead of processing. Refiners are raising runs to cash in on high margins to offset some of the losses incurred for selling fuels in the local markets. Some Indian refiners have also deferred maintenance shutdowns of units to gain from exports, while meeting rising local fuel demand.

Local fuel sales in India, the world’s third biggest oil importer and consumer, has been rising since the government lifted COVID-19 induced curbs as infections subsided.

India, the world’s third-biggest oil importer and consumer, ships in more than 80% of its crude needs and relies heavily on the Middle East.

Its reliance on the Middle East is, however, declining as refiners diversify their sources of oil imports to buy cheaper barrels from elsewhere to boost margins, a move that has cut the OPEC’s share in India’s oil imports.

Last month, the share of grades from Canada and the United States in India’s oil imports surged 14% to their highest in a year, while purchases from the Middle East grew the least since October 2021. The share of African oil rose to a four-month high in February, the data showed.

Iraq continued to be the top oil supplier to India followed by Saudi Arabia, the United Arab Emirates and the United States.

Kuwait emerged as the fourth-biggest supplier to India, replacing Nigeria, which slipped to No. 6 as Canada took No. 5 spot.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor