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Opec shares in India's oil imports fall to decade low due to Covid-19

The Covid-19 disruptions have changed the structure of the country's oil and gas sector with the share of OPEC crude in Indian oil imports falling to a decade-low level in July.

Topics
OPEC | India oil imports

IANS  |  New Delhi 

Opec strategy still a winner for members despite oil price slide

The Covid-19 disruptions have changed the structure of the country's oil and gas sector with the share of crude in Indian oil imports falling to a decade-low level in July.

As per data with industry sources, the oil cartel's share in India's oil imports fell to about 67 per cent in July as against highs of 75-80 per cent maintained earlier.

While the share of crude has been reducing for some time in wake of India expanding its oil import basket to include newer territories in Africa, South and North America, the fall in July has come in wake of Covid-19 which has squeezed demand in the domestic market.

In July, India's oil imports had also fallen by 36.6 per cent (YoY) to 12.3 million tonnes, the lowest in a decade. The demand is also low on account of restricted movement of vehicles that is the case during the monsoon months.

The lower domestic demand has also pushed Indian refiners to operate their refineries at 70-80 per cent capacity. This means they are using less crude to produce products. This has also impacted imports of crude.

Iraq and Saudi Arabia are the two of country's largest oil sourcing markets. Iraq currently enjoys the top position among markets that supply crude to India.

--IANS

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(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Mon, August 24 2020. 19:28 IST
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