Base Oil Report
India secured a six-month waiver on importing crude oil from Iran. Oil and natural gas prices will be volatile but range-bound in 2019, with the medium- term price band for West Texas Intermediate crude in the $50-70 a barrel range. This is significant that India imported 220.4 million metric tonnes of crude in 2017-18. Any dip in global crude prices will reduce India’s oil import bill and trade deficit.
The Indian base oil market remains steady with inventories at optimum levels with surplus of imported grades. During the month of November 2018, approximately 285,420 MT have been procured at Indian Ports of all the grades. Compared to October 2018, import of the country has increased by 15% in the month of November 2018. 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 has changed their base oil numbers as reflected in the price chart effective January 02, 2019. There has been no change in the prices for the second half of the current month.
In the month of November 2018, India imported 285420 MT of Base Oil, India imported the huge quantum in small shipments on different ports like 197,759 MT (69%) into Mumbai, 38355 MT (13%) into JNPT, 19,965 MT (7%) into Chennai, 8,877 MT (3%) into Pipavav, 7,203 MT (3%) into Kolkata, 6,272 MT (2%) into Kandla, 4,852 MT (2%) into Mundra, 1,476 MT (1%) into Ennore and 662 MT into Other Ports.
| Month | Group I-SN 500 Iran Origin | Group II-N 500 Korea Origin | N-70 South Korea Origin | Bright Stock USA Origin |
|---|---|---|---|---|
| November 2018 | 740 – 755 | 815 – 830 | 745 – 755 | 1155 – 1165 |
| December 2018 | 685 – 700 | 720 – 730 | 700 – 710 | 1030 – 1060 |
| January 2019 | 670 – 680 | 755 – 770 | 680 – 690 | 990 – 1000 |
| Between Nov 2018, prices have gone down by | USD 75 PMT (10%) | USD 65 PMT (8%) | USD 65 PMT (9%) | USD 165 PMT (14%) |
