India’s crude oil imports in June dropped to their lowest level in eight months as refiners cut down processing in the face of a tumultuous second wave of the coronavirus, says an article published in Reuters.
Lower imports
Crude oil imports rose in June by 16.3% to 15.90 million tonnes from a year earlier but dropped 7.8% from May, data on the website of the Petroleum Planning and Analysis Cell (PPAC) showed.
“Refiners reduced runs after the COVID-19 cases increased in April-May, which might have contributed to lower imports,” said Refinitiv analyst Ehsan Ul Haq, adding that the nation’s vaccine program is the key to future demand.
“If we don’t see another wave, demand will recover significantly in the fourth quarter of this year.”
Exports slipped in June
India’s coronavirus caseload of 31.48 million infections is the world’s second-highest behind the United States. Oil product imports rose 11% to 3.51 million tonnes from the previous month, while refined products exports slipped about 4% to 5.51 million tonnes in June.
Diesel shipments were down 3.8% from the preceding month, while petrol exports slipped 14%. India imports and exports refined fuels as it holds a surplus refining capacity. India’s crude oil imports extend slide in June
Did you subscribe to our daily newsletter?
It’s Free! Click here to Subscribe!
Source: Reuters
