Base Oil Report
Oil prices surged mid-march 2016 on word from OPEC officials that Saudi Arabia and other leading exporters OPEC will limit their output even if Iran doesn’t cooperate.
The market shrugged off mildly disappointing data about rising stockpiles in the U.S. to resume a rally that has juiced the market for more than a month. Oil is now up about 47% during that span as speculators have become more optimistic that nearly two years of price declines are finally forcing big producers to slow down. Saudi Arabia, Kuwait and their allies would limit their oil output even if Iran doesn’t follow suit, OPEC officials said, a change in tone that paves the way for cubs on crude production to be set next month. Qatar said it would host a meeting on April 17 for oil producers both inside and outside the Organization of the petroleum exporting countries. Light, sweet crude for April delivery settled up $2.12, or 5.8% to $38.465 a barrel on the New York Mercantile Exchange. It was the largest percentage gain in one day since Feb. 22.
The Indian base oil market remains steady with inventories at optimum levels with a surplus of imported grades. During the month of January 2016, approximately 193786 MT have been procured at Indian Ports of all the grades, which is 5% down as compared to December 2015, Major imports are from Korea, Singapore, USA, UAE, Iran, Taiwan, France, UK, Netherlands, Japan, Italy, Belgium, etc. Indian State Oil PSU's IOC/HPCL/BPCL basic prices across the board remain unchanged.
Hefty Discounts are also offered by refiners for lifting sizeable quantity. Group I Base Oil prices for neutrals SN -150/500 (Russian and Iranian origin) are offered in the domestic market at Rs. 30.20 – 30.35/30.50 – 30.60 per litre.
The Indian base oil market remains steady with inventories at optimum levels with a surplus of imported grades. During the month of January 2016, approximately 1,93,786 MT have been procured at Indian Ports of all the grades, which is 5% down as compared to December 2015. Indian State Oil PSU's IOC/HPCL/BPCL basic prices across the board remain unchanged.
Approximately 9,397 MT of Light & Heavy White Oil has been exported in the month of December 2015 from Chennai, JNPT, Mundra and Ahmedabad. Compared to last month i.e. November 2015; exports of the country have gone down by 7% in the month of December 2015.
Approximately 6,522 MT of Transformer Oil has been exported in the month of December 2015 from JNPT and Chennai.
| Month | Group I - SN 150 Iran Origin | N-500 Korean Origin | J- 500 Singapore Origin | Napthenic Base Oil HYGOLD L2000 |
|---|---|---|---|---|
| November 2015 | 450-455 | 575-580 | 565-575 | 545-565 |
| December 2015 | 465-470 | 550-560 | 545-550 | 53-535 |
| January 2016 | 445-450 | 530-540 | 525-530 | 510-515 |
| Since November 2015, prices have dripped down by USD 5 PMT (1%) in January 2016. | Since November 2015, prices have reduced by USD 45 PMT (8%) in January 2016. | Since November 2015, prices have gone down by USD 40 PMT (7%) in January 2016. | Since November 2015, prices have fallen down by USD 40 PMT (7%) in January 2016. |
| South Korea | 89209 | 44% |
| UAE | 33210 | 16% |
| Spain | 21780 | 11% |
| Singapore | 19973 | 10% |
| USA | 20664 | 10% |
| Bahrain | 6174 | 3% |
| Taiwan | 3211 | 2% |
| Iran | 3673 | 2% |
| Pakistan | 1177 | 1% |
| Sweden | 2074 | 1% |
| Netherlands | 2195 | 1% |
| Other Countries | 1696 | 1% |
| Mumbai | 163099 | 80% |
| JNPT | 19248 | 9% |
| Ennore | 5153 | 3% |
| Chennai | 5796 | 3% |
| Pipavav | 3584 | 2% |
| Mundra | 1587 | 1% |
| Kandla | 2639 | 1% |
| Kolkata | 2698 | 1% |
| Other Ports | 1232 | 1% |
