Base Oil Report
The international crude oil price of the Indian Basket as computed/published by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas went down sharply to $98.68 (U.S.) per barrel (bbl) on May 2, 2013. This was lower than the price of $101.34 (U.S.)/bbl prevailing on the previous trading day of April 30, 2013. The crude oil price in rupee terms also registered a significant drop, with the latest price reaching 5303.06 Rs/bbl on May 2, 2013, as compared to 5494.65 Rs/bbl on April 30, 2013. This was due to both a decrease in price in dollar terms and rupee appreciation. The rupee-dollar exchange rate on May 2, 2013, was 53.74 Rs/dollar, compared to 54.22 Rs/dollar on the previous trading day of April 30, 2013.
| Month | Bright Stock-150 CFR | Group I-SN 500 Base Oil CFR | Group II J-500 CFR | Tranformer Oil BaseStock-60 CFR |
|---|---|---|---|---|
| January 2013 | 1070-1085 | 895-910 | 1000-1015 | 940-955 |
| February 2013 | 1090-1105 | 910-925 | 1025-1040 | 960-975 |
| March 2013 | 1095-1100 | 985-1000 | 1055-1070 | 970-985 |
| Since January 2013, price has increased up by USD 25 PMT (2%) in March 2013. |
Since January 2013, price has jumped up by USD 45 PMT (5%) in March 2013. |
Since January 2013, price has risen by 5% in March 2013. | Since January 2013, price has surged up by 3% in March 2013. |
India is a key base oil market in the Asian region, with imports accounting for almost 2 million tons per year. A large amount of base oil will be required for finished lubricants as the industrial sector and automotive sales have been booming in comparison to other regions. India imported approximately 2.09 million metric tons (MT) in 2012, compared to 1.86 million MT in 2011, which is a jump of 12 percent. India also exports lube base oils, transformer oils, white oils and liquid paraffins (light and heavy). It exported 200,817 MT in 2011. In 2012, that number was nearly 251,601, which is an increase of 25 percent. This information was presented by Dhiren Shah, editor-in-chief of Petrosil, during his overview of base oil and wax markets in India at a recent conference in Abu Dhabi held in conjunction with the 21st annual Middle East Petroleum and Gas Conference (MPGC).
The Indian base oil market has become somewhat active after a long lull, although there are sufficient inventories with a surplus of imported grades. During the month of March 2013, approximately 161,937 MT of base oils of all the grades have been procured at Indian Ports. Major imports are from Korea, Singapore, the U.S., the UAE, Iran, Taiwan, France, the U.K., Netherlands, Japan, Italy, Belgium, etc. Hefty discounts are offered by refiners in the range of 12 to 15 Rs per liter for buyers who commit to lift more than 1,500 MT. Group I base oil prices for neutrals SN-150/500 (Russian and Iranian origin) are offered in the domestic market at 52.95 to 54.10 Rs per liter, with excise duty and value-added tax as applicable in bulk for one tanker load. At current level availability is not a concern.
During the period from January to March 2012, India imported 466,016 MT of base oil. The country's imports have increased by 6 percent during the period from January to March 2013, as compared to the same period a year ago. During the period from January to March 2013, India imported 494,027 MT of base oil.
