Indian Oil Imports At A Record High In September

| October 21 , 2017 , 19:31 IST

India imported a record 4.83 million barrels per day (bpd) of oil in September as several refiners resumed operations after extensive maintenance to meet rising local fuel demand. India stands as the third largest importer of oil in the world. 4.2 percent more oil was shipped last month than in 2016 and about 19 percent more than August according to an analysis of Thomson Reuters.

Several refineries witnessed heavy maintenance in July-August. After coming online these refineries had to boost purchases to meet the demand.

Refiners had imported 18.81 million tonnes (about 4.45 million barrels a day) of crude oil during the same month in 2016, a 9.1% increase over 2015, according to the oil ministry’s Petroleum Planning & Analysis Cell. That was the highest level in data on the PPAC’s website going back to April 2009.


Maintenance turnaround at some refineries led to Indian Oil Corp deferring the shutdown of its 300,000 bpd coastal Paradip refinery to April-March.

During the first nine months of the year India's oil imports rose 1.8 percent to about 4.4 million bpd, with most supplies coming from the Middle East, followed by Africa and Latin America.

Indian fuel demand typically eases in the third quarter as monsoon rains hit construction, industrial activity and reduces consumption of transport fuels. That provides refiners with an opportunity to carry out maintenance. Capacity addition is also driving up India's oil imports.

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India meets over 80 percent of its crude oil requirements through imports, has emerged as a bright spot for global oil demand as the the fastest economic expansion among major economies spurs increased use of trucks, cars and motorbikes. The International Energy Agency expects India to be the fastest-growing crude consumer in the world through 2040.

The South Asian nation is set to surpass China as the fastest-growing oil products market in Asia, with fuel demand growing by 6.1 percent in 2018, according to a recent report by the U.S. Energy Information Administration. FGE expects India's fuel demand to rise by about 4.5 percent this year to 4.2 million bpd and by 5.1-5.2 percent in 2018.