Base Oil Report
Crude oil prices have deteriorated to around pre-Iraq crisis level. Indian basket crude oil price was at $104.22 on July 15, However, crude oil prices rose a bit on July 16 due to good economic number emerging from China.US crude prices gained a dollar to over $100.50 a barrel. Before, Iraq crisis the average crude oil price of Indian basket was hovering around $105 a barrel. During peak of Iraq crisis price of Indian basket of crude oil had risen to around $112 a barrel raising concerns of its impact on economic revival of the country. India imported approximately 10.13 million MT of Crude Oil during May 2014 of different grades.
The Indian base oil market remains steady with inventories at optimum levels with surplus of imported grades. During the month of May 2014, approximately 212237 MT which is 18% marked down as compared to April 2014, have been procured at Indian Ports of all the grades. Indian State Oil PSU's IOC/HPCL/BPCL basic prices for SN - 70/N - 70/N-65/SN - 150/N -150/N - 150 marked up by Rs. 1.20 per liter on its basic prices, While SN - 500/N - 500/MakBase - 500 were up by Rs. 0.40 per liter. Bright stock prices were also up by Rs. 2.00 per Liter effective July 01, 2014. Hefty Discounts are offered by refiners which are in the range of Rs. 10.00 - 13.00 per liter for buyers who commit to lift above 1500 MT. Group I Base Oil prices for neutrals SN -150/500 (Russian and Iranian origin) are offered in the domestic market at Rs. 61.25 - 61.50/61.60 - 62.10 per liter, excise duty and VAT as applicable Ex Silvassa in bulk for one tanker load. At current level availability is not a concern.
| Crude Oil | Import | Percentage |
|---|---|---|
| Arab Crude Oil | 2.73 million MT | 27% |
| Basrah Light Crude Oil | 2.17 million MT | 21% |
| Murban Crude Oil | 947862 MT | 9% |
| Kuwait Export Crude Oil | 940208 MT | 9% |
| Iranian Heavy/Light Crude Oil | 776714 MT | 8% |
| Other Crude Oil | 907652 MT | 9% |
| Bonny Light Crude Oil | 515936 MT | 5% |
| Azeri Crude Oil | 355423 MT | 4% |
| Girassol Crude Oil | 278316 MT | 3% |
| Quaiboe Crude Oil | 253284 MT | 2% |
| Amenam blend Crude Oil | 250534 MT | 2% |
The Indian domestic market Korean origin Group II plus N-60-70/150/500 prices at the current; level is steady. As per conversation with domestic importers and traders prices have inched up for N - 60/ N- 150/ N - 500 grades and at the current level are quoted in the range of Rs. 60.75 - 60.85/62.15 - 61.50/65.00 - 65.10 per liter in bulk respectively with an additional 14 percent excise duty and VAT as applicable, no Sales tax/Vat if products are offered Ex-Silvassa a tax free zone. The above mentioned prices are offered by a manufacturer who also offers the grades in the domestic market, while another importer trader is offering the grades cheaper by Rs.0.25 - 0.35 per liter on basic prices. Light Liquid Paraffin (IP) is priced at Rs. 61.90 - 62.10 per liter in bulk and Heavy Liquid paraffin (IP) is Rs. 66.30 - 66.60 per liter in bulk respectively plus taxes extra.
During the month of April 2014, India imported 259783 MT of Base Oil. The country imported 130080 MT (50%) from Korea, 28993 MT (11%) from USA, 20903 MT (8%) from Singapore, 12707 MT (5%) from UAE, 20008 MT (8%) from Russia, 10090 MT (4%) from Brazil, 7060 MT (3%) from Taiwan, 6449 MT (2%) from Pakistan, 5436 MT (2%) from Italy, 4941 MT (2%) from Netherlands, 4085 MT (2%) from Bahrain, 2569 MT (1%) from Other countries, 2349 MT (1%) from Sweden, 2531 MT (1%) from Iran and 1582 MT (1%) from Qatar. While in the month of April 2014, India imported 259783 MT of Base Oil, India imported the huge quantum in small shipments on different ports like 210621 MT (81%) into Mumbai, 31558 MT (12%) into JNPT, 8342 MT (3%) into Chennai, 5649 MT (2%) into Ennore, 2008 MT (1%) into Kolkata and 1605 MT (1%) into Other Ports.
Approximately 10947 MT of Light & Heavy White Oil has been exported in the month of April 2014 from JNPT, Mundra, Raxaul LCS, and Chennai port. Compared to last month i.e. March 2014, exports of the country have increased by 17% in the month of April 2014.
Approximately 3443 MT of Transformer Oil has been exported in the month of April 2014 from JNPT and Chennai port. It has been exported to Bangladesh, Brazil, Malaysia, Iran, New Zealand, Oman, Paraguay, Morocco, Indonesia, South Africa, Sri Lanka, Saudi, Philippines, Thailand, Vietnam, and UAE.
| Month | Group I-SN 500 Iran Origin Base Oil CFR India Prices | N-70 Korean Origin Base Oil CFR India Prices | J-150 Singapore Origin Base Oil CFR India Prices | Naphthenic Base Oil HYGOLD L 2000 |
| April 2014 | 975-985 | 1025-1035 | 1050-1060 | 1020-1030 PMT |
| May 2014 | 995-1010 | 1035-1050 | 1060-1070 | 1035-1045 PMT |
| June 2014 | 1030-1045 | 1050-1065 | 1090-1105 | 1075-1085 PMT |
| April | 960-970 | 1025-1035 | 1060-1070 | 1130-1150 |
| Since April 2014, prices jumped up by USD 70 PMT (7%) in June 2014 | Since April 2014, prices has marked up by USD 40 PMT (4%) in June 2014 | Since April 2014, prices has gone up by USD 55 PMT (5%) in June 2014 | Since April 2014, prices has increased by USD 65 PMT (6%) in June 2014 |
India, UAE discuss strategic oil storage lease. India is in talks to lease part of its planned strategic storage to United Arab Emirates' state oil company ADNOC, two government sources said, as New Delhi moves to protect its economy against crude price shocks and supply disruptions. India, the world's fourth largest oil consumer, imports about 80 percent of its oil needs and is building emergency storage capacity to hedge against energy security risks. India had initially planned to fill the oil storage without overseas participation, but it is now drawn to deals similar to those that the Abu Dhabi National Oil Company (ADNOC) struck earlier with Japan and South Korea. Such a deal would take into account India's growing role as a regional refining hub. The South Asian nation imports around 16 million tonnes of crude a month - more than it consumes - and exports about a third of that as refined products. "Final details of the plan are yet to be worked out but they (ADNOC) have said they can take up to 2 million tonnes capacity.
Countries from Where Base Oil is Imported
- Korea
- Singapore
- USA
- UAE
- Iran
- Taiwan
- France
- UK
- Netherlands
- Japan
- Italy
- Belgium
Countries Where Light & Heavy White Oil Has Been Exported
- Argentina
- Australia
- Bangladesh
- Bulgaria
- Brazil
- Cambodia
- Chile
- Canada
- Dominican Re
- Djibouti
- Ecuador
- Egypt
- Germany
- Ghana
- Greece
- Indonesia
- Ivory Coast
- Israel
- Italy
- Jordan
- Kenya
- Malaysia
- Mauritius
- Myanmar
- Nepal
- New
- Zealand
- Nigeria
- Pakistan
- Peru
- Philippines
- Poland
- Russia
- South Africa
- Senegal
- Spain
- Sri Lanka
- Sudan
- Taiwan
- Tanzania
- Thailand
- Turkey
- UAE
- UK
- Ukraine
- Vietnam
- Yemen
- Zaire
