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’ Rate Of Crude Production In June 2021


The refiners operated at an average rate of 89.59 per cent of capacity in June

The country’s refiners’ crude throughput in June was little changed from the previous month when it fell to multi-month lows as a severe second wave of coronavirus restrained demand, forcing refiners to reduce runs.

Refiners processed 4.50 million barrels per day (18.4 million tonnes) of crude oil in June, provisional government data showed on Friday. This compares with 4.49 million barrels per day (bpd) processed in May, which was the lowest since October 2020.

Crude oil imports also fell to a nine-month low in June as refiners curtailed purchases amid higher fuel inventories due to low consumption and renewed lockdowns in the previous two months, data obtained from trade sources showed.

Refineries’ crude oil throughput last month was still 4.7 per cent higher than June 2020 levels. India’s fuel demand also inched higher after slumping to a nine-month low in May as many states in the world’s third-biggest oil importer and consumer started easing restrictions and mobility picked up. 

The state fuel retailers’ gasoline sales also exceeded pre-pandemic levels in the first fortnight of July, preliminary industry data showed last week.

“With a further likely easing of mobility restrictions, I would expect oil demand to recover further, resulting in higher refinery processing rates down the road,” UBS analyst Giovanni Staunovo said.

The refiners operated at an average rate of 89.59 per cent of capacity in June, down from 92.37 per cent of capacity in May, the government data showed.
 

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June refinery capacity utilisation rate hits 8-month low
Photo Credit: Reuters

The country’s largest refiner, Indian Oil Corp (IOC), last month operated its directly owned plants at 93.53 per cent capacity, as per the data. Reliance, owner of the world’s biggest refining complex, operated its plants at 93.12 per cent capacity in June.

Natural gas output rose 19.5 per cent to 2.78 billion cubic metres, while crude oil production eased nearly two per cent to 606,000 barrels per day (2.48 million tonnes), data from the Ministry of Petroleum and Natural Gas showed.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)



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Latest News Today – Indian Oil Refiners Cut Output, Imports As COVID-19


IOC’s refineries were operating at about 95 per cent of their capacity in late April.

The top state oil refiners are reducing processing runs and crude imports as the surging COVID-19 pandemic has cut fuel consumption, leading to higher product stockpiles at the plants, company officials told Reuters on Tuesday. Indian Oil Corp, the country’s biggest refiner, has reduced runs to an average of between 85 per cent and 88 per cent of processing capacity, a company official said, adding runs could be cut further as its plants at Gujarat, Mathura and Panipat are facing problems storing bitumen and sulphur.

IOC’s refineries were operating at about 95 per cent of their capacity in late April. “We do not anticipate that our crude processing would be reduced to last year’s level of 65 per cent-70 per cent as inter-state vehicle movement is still there … (the) economy is functioning,” he said.

Several states across India are under lockdown as the coronavirus crisis showed scant sign of easing on Tuesday, with a seven-day average of new cases at a record high, although the government of India, the world’s third-largest oil importer, and consumer, has not implemented a full lockdown.

State-run Bharat Petroleum Corp has cut its crude imports by 1 million barrels in May and will reduce purchases by 2 million barrels in June, a company official said. M.K. Surana, chairman of Hindustan Petroleum Corp, expects India’s fuel consumption in May to fall by five per cent from April as the impact on driving and industrial production is not as severe as last year.

“This time it is not a full lockdown like last time,” he said. “Sales in April was about 90 per cent of March and we expect May could be about five per cent lower than April.” HPCL has no immediate plan to cut crude runs, he said, although the company has shut some units at its 150,000 bpd Mumbai refinery for maintenance and upgrade.

State-run Mangalore Refinery and Petrochemicals Ltd’s is already operating its 300,000 bpd complex at lower rates because of maintenance at a 60,000 bpd crude unit and some secondary units, a company official said.

“The crude and other units will start operations from the end of this month, we will decide on the future course after seeing local demand,” he said. To ease storage problems, India could export some diesel, which constitute 40 per cent of local refiners output, another BPCL official said. No immediate response was available from the companies.



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Latest News Today – Indian Refiners, HPCL-Mittal Energy and Mangalore


Indian purchases from the U.S. more than doubled in January on-month, government data show

Refiners in the third-biggest oil importer are snapping up more cargoes from outside the Middle East after the government urged them to diversify suppliers with the OPEC+ alliance keeping a tight rein on output. Local processors are adding new grades and lifting more U.S. oil to pare their reliance on the Middle East, the nation’s traditional supplier. HPCL-Mittal Energy became the first Indian buyer of Guyanese oil, while Mangalore Refinery & Petrochemicals has booked a shipment of Brazil’s Tupi for the first time.

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While expanding energy demand makes it imperative for India to widen its pool of crude sources, the surprise decision earlier this month by the Organization of Petroleum Countries and its allies to extend supply curbs irked the government as prices spiked. India, which imports about 90 per cent of its oil requirements, has seen record pump prices this year. That’s an extra burden as the economy takes a heavy hit from the coronavirus pandemic.

The results of the far-flung spree are starting to show up in cargo movements. Suezmax Sea Garnet, chartered by Trafigura Group, is set to arrive in Mundra on India’s west coast on April 8, after loading 1 million barrels of Liza crude from a floating vessel in Guyana, according to data intelligence firm Kpler.

Indian purchases from the U.S. more than doubled in January on-month, government data show. The country’s sophisticated refineries can process almost every kind of crude, allowing them to be more adventurous in sourcing.

“Indian refiners on the whole have been quite progressive in diversifying their crude basket over recent years,” said Vandana Hari, founder of Vanda Insights in Singapore. “While there may be some political capital right now in advertising the continuing diversification, the fact is it was an ongoing process and will remain so, for commercial reasons.”

Brent crude, which spiked above $71 a barrel earlier this month after the OPEC+ decision to maintain supply curbs, was at $63.46 on Thursday.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)



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