Base Oil Report
India’s crude oil imports peaked in August as refineries stepped up purchases to meet record domestic fuel consumption. Indian refiners imported 18.81 million metric tons (about 4.45 million barrels a day) of crude oil during the month, a 9.1 percent increase over last year. The International Energy Agency expects India to be the fastest-growing crude consumer in the world through 2040. Indian State-run Indian Oil Corp. aims to increase its capacity by 30 percent, or about 2 million barrels per day over the next six years. According to the oil ministry, country’s 23 refineries have a total capacity of 230 million tons a year and total fuel demand was 183.5 million tons during the financial year that ended March 31.
During January to July 2016, India imported 1.65 million MT of Base Oil: Jan: 193786 MT, Feb: 208150 MT, Mar: 229985, April: 257118 MT, May: 197892 MT, June: 290324 MT and July: 277855 MT. Compared to June 2016, import of the country shrunk by 4% in July 2016 but increased by 19% in comparison to July 2016 with July 2015. There has been 21% surge in import during Jan-July 2016 compared to January-July 2015 which was 1.37 million MT.
The Indian base oil market remains steady with inventories at optimum levels with surplus of imported grades. During July 2016, approximately 277855 MT have been procured at Indian Ports of all the grades, which is a 4% fall down compared to June 2016. Indian State Oil PSU’s IOC/HPCL/ BPCL basic price for SN – 70/N – 70/SN – 150/N -150 marked up by Rs. 1.60 per liter, while SN - 500/N - 500 up by Rs 0.30 per liter with hefty discounts on sizeable quantity. Bright Stock prices down by Rs. 4.10 per liter effective September 01, 2016.Group I Base Oil prices for neutrals SN -150/500 (Russian and Iranian origin) are offered in the domestic market at Rs. 36.50 – 36.75/38.75 – 39.20 per liter, excluding Vat and other charges.
The Indian domestic market Korean origin Group II plus N-60–70/150/500 prices at the current level are up by for lighter grades while it is down for heavier grades. As per conversation with domestic importers and traders prices for N – 60/ N- 150/ N - 500 grades and at the current level are quoted in the range of Rs 37.70 – 38.25/39.75 – 40.40/45.75 – 46.50 per liter in bulk respectively (with other charges as applicable). Light Liquid Paraffin (IP) is priced at Rs. 39.75 – 39.95 per liter in bulk and Heavy Liquid paraffin (IP) is Rs.52.25 – 52.75 per liter in bulk respectively excluding taxes.
Approximately 10696 MT of Light & Heavy White Oil has been exported to different nations in July 2016 from JNPT, Chennai, Petrapole, Raxaul, Village Ponneri and Mundra which is 2% more compared to June 2016. Almost 3815 MT of Transformer Oil has been exported on July 2016 from JNPT, Raxaul, Ahmedabad and Chennai to numerous countries.
| Month | Group I–SN 500 Iran Origin | N-70 Korean Origin | J- 150 Singapore Origin | Bright Stock-150 |
|---|---|---|---|---|
| May 2016 | 475–485 | 500–505 | 515–525 | 915–920 |
| June 2016 | 530–550 | 535–550 | 565–575 | 970–980 |
| July 2016 | 565–575 | 555–575 | 585–595 | 980–990 |
| August 2016 | 595–605 | 585–605 | 615–625 | 1010-1020 |
| September 2016 | 565–575 | 575–585 | 590–605 | 985–995 |
| Price change | 90 (+19%) | 75 (+15%) | 80 (+15%) | 70 (+8%) |
