OPEC Shares of Indian Oil Imports Firm After Six -Year Decline – By ASC

Russian oil continues to account for less than 1% of India’s crude imports in 2021/22.

OPEC’s share of India’s oil imports for financial year 2021/22 remained virtually unchanged from year to year, withstanding a sharp decline over the past six years, as refineries took crude oil close range from the middle east to offset global price increases.

Total crude oil imports by the world’s third -largest oil importers and consumers increased by 7.2% annually to 4.26 million barrels per day (bpd) in the year to March 31, ship tracking data from industry sources showed.

The share provided by members of the Organization of the Petroleum Exporting Countries (OPEC) – mainly from the Middle East and Africa – was 71.6% in 2021/22, compared to 71.9% in 2020/21, the data showed.

OPEC oil accounted for about 88% of India’s crude oil imports in 2007/08.

“OPEC increases its production almost every month by about 250,000 bpd, and India is a close market for that. At the same time Indian refineries are increasing crude oil processing to meet rising fuel demand,” said Refinitiv analyst Ehsan Ul Haq.

In the next few months OPEC’s share of India’s overall imports could decline as refiners in Asia’s third -largest economy buy cheaper Russian oil that has been shunned by some western countries and companies after Russia’s invasion of Ukraine.

Russian oil continues to account for less than 1% of India’s crude imports in 2021/22.

The rise in global oil prices from November prompted Indian refiners to take “the full amount or perhaps more than the committed amount” in their annual contracts with Middle Eastern producers, Haq said.

India’s consumption of medium to heavy grade oil refineries, especially from the Middle East, increased as the easing of the country’s COVID-19 restrictions boosted domestic fuel demand.

“The margins for diesel are very impressive and the heavy grades from the Middle East are rich in diesel,” Haq said.

India’s fuel demand in the last financial year increased by 4.3% for the biggest increase in four years.

The share of Middle East oil in India’s imports rose to 64% in 2021/22, up from 62% a year earlier, while Latin America and Africa declined.

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(This story has not been edited by NDTV staff and is automatically generated from a syndicated feed.)

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