Private Oil Refiners To Work With – Latest news headlines

India is forming a group bringing together state and private refiners to seek better crude import deals

Private oil refiners are willing to work with state-run peers to bargain collectively for better oil import deals, oil minister Hardeep Singh Puri said on Friday, as the nation looks to cut its import bill.

India is forming a group bringing together state and private refiners to seek better crude import deals, Reuters reported on Monday.

“The outcome of the meeting between private and state-run (refiners on a joint oil procurement plan) was very encouraging,” Puri said in a news conference at the India Energy Forum industry event.

He said the private companies are “enthused” by the plan.

India is the world’s third-largest oil importer and consumer, reliant on imports for about 85 per cent of its crude and buying most of that from Middle East producers.

Private companies including Reliance Industries, operator of the world’s biggest refining complex, and Nayara Energy, partly owned by Russian oil major Rosneft, control about 40 per cent of India’s 5 million barrel per day (bpd) refining capacity.

With local gasoline and gasoil prices rising to record highs in India’s worst power crisis for years, the nation wants to redouble efforts to buy wisely.

The country’s trade deficit last month surged to a record $22.6 billion, its highest in at least 14 years, driven by expensive imports.

India has repeatedly asked the Organization of the Petroleum Exporting Countries (OPEC) and its allies, together known as OPEC+, to boost output to bring down global oil prices.

“Cost of energy should not be allowed to outstrip paying capacity of consumers and this imperative needs to be configured by the consuming countries in planning their production profile for the future,” Puri said.

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Latest News Today – Oil Refiners Process Less Crude In April As COVID-19

Oil refiners operated at an average rate of 96.82 per cent in April 2021

The country’s crude oil processing fell in April from the previous month with top refiners reducing crude runs as a fierce second wave of coronavirus infections curbs mobility and demand for fuel. Refiners processed about 4.9 million barrels per day (bpd) or 19.89 million tonnes of oil last month, government data showed. That was 1.2 per cent lower than March levels but a 35 per cent jump from a year earlier. 

“As of now, the companies are not operating at maximum capacity because several states have placed partial shutdowns and have granted permission to operate at half capacity,” said Gaurav Garg, Head of Research at CapitalVia Global Research.


India’s crude oil processing slips in April
Photo Credit: Reuters

Fuel demand also fell last month as world’s third-largest oil consumer has been reporting around 250,000 infections and 4,000 deaths daily. A second wave of virus infections have forced several states to impose stricter restrictions to limit the movement of people, impacting industrial activities and fuel consumption.

Oil refiners operated at an average rate of 96.82 per cent in April compared with 98.89 per cent in the prior month, the data showed. The country’s biggest refiner, Indian Oil Corp has reduced crude processing to average at 84 per cent of overall capacity from 96 per cent in April.

“We expect refinery crude intake in India to drop by nearly 900,000 bpd in 2Q 2021 compared to pre-pandemic levels, as Indian refiners reduce runs significantly during May and June, with effects lasting into the third quarter,” said Julie Torgersrud from Rystad Energy’s Oil Market team.

Road traffic has been severely impacted in both cities and rural areas and the effects on refined products demand are expected to last through the third quarter, she added. On a yearly basis, crude oil production in the country eased 2.1 per cent to 609,000 bpd or 2.49 million tonnes and was down 4.6 per cent from March.

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