Base Oil Report

Oil prices edged higher after a steep fall, supported by extended output cuts by OPEC and its allies despite concerns that a slowing global economy could crimp demand. An expected large draw in US crude oil inventories also underpinned sentiment after a bigger-than-expected stocks fall in a private survey.

India's state-run Mangalore Refnery and Petrochemicals Ltd (MRPL) has made its frst purchase of U.S.-produced Tunder Horse crude oil via a tender for mid-October delivery, an industry source said. The state-run refner placed an order to buy 1 million barrels of the oil with BP recently, the source said. The deal comes as Indian refner’s ramp up purchases of U.S. oil to compensate for the loss of Iranian oil supplies.

India imported 229572 MT of Base Oil in May 2019. Base Oil import of India has gone down by 22% in May 2019, as compared to last month i.e. April 2019. Base Oil import of India has gone down by 1% in May 2019, as compared to same period last year i.e. May 2018.

The Indian base oil market remains steady with inventories at optimum levels with surplus of imported grades. During the month of May 2019, approximately 229572 MT have been procured at Indian Ports of all the grades. Compared to last month i.e. April 2019, import of the country has decreased by 22% in the month of May 2019.

The Indian domestic market Korean origin Group II plus N-60–70/150/500 price at the current level is marginally down for lighter grades and heavier grades. As per conversation with domestic importers and traders prices for N–70/ N-150/ N-500 grades and at the current level are quoted in the range of Rupees 45.15 – 45.30/46.00 – 46.15/51.90 – 52.10 per litre in bulk plus 18% GST as applicable. Discounts being offered for sizeable quantity.

While in the month of May 2019, India imported 229572 MT of Base Oil, India imported the huge quantum in small shipments on different ports like 148754 MT (65%) into Mumbai, 18340 MT (8%) into Hazira, 15572 MT (7%) into JNPT, 15054 MT (7%) into Mundra, 13326 MT (6%) into Chennai, 9462 MT (4%) into Pipavav, 6927 MT (3%) into Kolkata and 2137 MT (1%) into Other Ports.