THE HIGHEST INDIAN OIL
India's oil imports from Saudi Arabia and Iraq hit the highest in more than a decade last month as OPEC's top producers gained at the expense of Latin American crudes, a validation of the OPEC policy of maintaining output and fighting for market share.
Competitive prices and shorter shipping distances are giving the Middle East members of the Organization of the Petroleum Exporting Countries (OPEC) the upper hand in India, the world's third-largest crude oil importer.
Saudi Arabia was the top supplier to India in January, with volumes jumping 29 percent from the same month a year ago to nearly 940,000 barrels per day (bpd), ship tracking data obtained from sources and data compiled by Thomson Reuters Oil Research & Forecasts showed on Friday.
Just behind was Iraq at 930,000 bpd, up 52 percent from January levels last year. The daily rates from both were at their highest since at least 2001, according to data available on the Thomson Reuters Eikon terminal.
In contrast, total imports from Latin America fell by a quarter in January from a year ago to 706,000 bpd, the data showed.
"We are going slow in the purchase of Latin America oil and have raised supplies from the Middle East," said H. Kumar, managing director of Mangalore Refinery and Petrochemicals Ltd.
Indian refiners say they increased imports of Middle Eastern crude after Brent rose relative to the Dubai benchmark, making oil priced off the latter more attractive.
As well, on top of competitive monthly prices for its oil compared with similar grades, Iraq provides discounts that could amount to more than $1 a barrel to compensate for crude quality changes, trade sources said.
"Basra Heavy is better priced compared to any other heavy crude. Even Basra Light is better priced compared to other heavy crudes," A. K. Sharma, head of finance at Indian Oil Corp said last week.
IOC buys about 300,000 bpd of Iraqi oil, including a recently signed term deal for Basra Heavy.
Reliance Industries Ltd, owner of the world's biggest refining complex, has also entered into a long-term deal with Iraq to buy Basra Heavy, according to its website.
Indian refiners that have invested billions of dollars in upgrading their plants are scouting for cheaper heavy, sour grades such as those from Iraq and Iran to maximise gross refining margins.
"For a country like India where value of local currency is fluctuating and so are global oil markets, it's better to go for nearby markets for oil purchases than going for a parcel that takes up to two months to reach India," said Ehsan Ul-Haq, senior analyst at London-based consultancy KBC Energy Economics.
The Indian rupee is edging near a record low of 68.85 to the U.S. dollar hit in August 2013 - when India was mired in its worst currency turmoil in more than two decades.
In January, India also took just over 170,000 bpd of Iranian crude, down nearly 40 percent from the same month last year, the data showed. Volumes from Iran are expected to surge from this month as Indian buyers start receiving barrels snapped up from Tehran soon after economic sanctions were lifted.
|November, 20, 09:35:00|
|November, 20, 09:30:00|
|November, 20, 09:25:00|
|November, 20, 09:20:00|
|November, 20, 09:15:00|
|November, 20, 09:10:00|
REUTERS - India’s natural gas consumption is expected to rise to 70 billion cubic metres (bcm) by 2022 and 100 bcm by 2030, according to a government think tank and the Oxford Institute of Energy Studies, up from 50 bcm now. India burns just 7 percent of what top user the United States consumes in a year with about a quarter of India’s population.
Norway, which relies on oil and gas for about a fifth of economic output, would be less vulnerable to declining crude prices without its fund investing in the industry, the central bank said Thursday. The divestment would mark the second major step in scrubbing the world’s biggest wealth fund of climate risk, after it sold most of its coal stocks.
WSJ - Light, sweet crude for December delivery rose $1.41, or 2.6%, to $56.55 a barrel on the New York Mercantile Exchange, snapping a three-session losing streak. Brent, the global benchmark, advanced $1.36, or 2.2%, to $62.72 a barrel.
U.S. Rig Count is up 327 rigs from last year's count of 588, with oil rigs up 267, gas rigs up 61, and miscellaneous rigs down 1 to 1. Canada Rig Count is up 24 rigs from last year's count of 184, with oil rigs up 9 and gas rigs up 15.