Base Oil Report
India’s crude oil imports rose 17.7% to 4.5 MMbpd (million barrels per day) in September 2016# compared to the same period in 2015. September imports were at their highest level since April 2009. A rise in domestic demand led to the rise in crude oil imports. India’s oil ministry expects India’s crude oil demand to rise 11% in 2016# compared to 2015. This would be driven by better economic growth and favorable monsoon rains. Crude oil consumption in India will rise by 400,000 barrels per day in 2016# and 2017.
| January 2016 | 193786 MT |
| February 2016 | 208150 MT |
| March 2016 | 229985 MT |
| April 2016 | 257118 MT |
| May 2016 | 197892 MT |
| June 2016 | 290324 MT |
| July 2016 | 277855 MT |
| August 2016 | 215886 MT |
| September 2016 | 131183 MT |
The IEA (International Energy Agency) projects that India’s crude oil demand growth rate will be the highest by 2040. The IEA estimates that India is the fourth-largest country in terms of global refining capacity. Indian government data show that India’s refining capacity has grown from 62 million tons per year in 1999 to 215 million tons per year in 2015. India’s refining capacity is expected to increase more due to various expansion projects, which could support crude oil imports.
The U.S. Energy Information Administration reported that India plans to build three SPRs (strategic petroleum reserves) in 2016. The expected capacity of the SPRs is 39.1 MMbbls (million barrels) of crude oil. Most of these facilities will be completed by the end of 2016. India is also planning a second phase of SPR capacity of 91 MMbbls by 2020. This could also add to its demand for crude oil. India’s crude oil production was at 900,000 bpd in 2015, much less compared to its refinery capacity at 4.4 Mbpd (million barrels per day)
| Month | Group I–SN 150 Iran Origin | N-70 Korean Origin | J- 500 Singapore Origin | Bright Stock-150 |
|---|---|---|---|---|
| July 2016 | 515–520 | 555–575 | 605–615 | 980–990 |
| August 2016 | 545–550 | 585–605 | 635–645 | 1010–1020 |
| September 2016 | 515–520 | 575–585 | 610–625 | 985–995 |
| October 2016 | 505–510 | 560–565 | 600–615 | 975–985 |
| November 2016 | 490–495 | 545–550 | 585–600 | 960–970 |
| Prices since July 2016 | Gone down by USD 25 PMT (5%) in November 2016. | Have fall down by USD 15 PMT (3%) in November 2016. | Have decreased by USD 15 PMT (2%) in November 2016. | Have dipped down by USD 20 PMT (2%) in November 2016. |
