Base Oil Report

Indian markets followed the global equities meltdown. While shares of most domestic oil marketing companies (OMCs) rose, oil and gas explorers saw a severe sell-off. The fall in crude oil prices has placed major consumers such as India at an advantage. India is the world’s third-largest crude oil buyer and the fourth-largest liquefied natural gas importer. Brent fell to $31.02 a barrel, before recovering partially to trade at $35.36 per barrel, a far cry from the high of $147 a barrel in July 2008. The West Texas Intermediate (WTI) was at $31.79 per barrel.

The Indian domestic market Korean origin Group II plus N-60–70/150/500 prices at the current level is marginally up 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 42.95 – 43.10/43.70 – 43.85/48.60 – 48.75 per litre in bulk plus 18% GST as applicable. Discounts being offered for sizeable quantity. The above mentioned prices are offered by a manufacturer who also offers the grades in the domestic market, while another importer trader is offering the grades cheaper by Rs.0.30 – 0.35 per litre on basic prices. Light Liquid Paraffin (IP) is priced at Rs.44.25 – 44.40 per litre in bulk and Heavy Liquid paraffin (IP) is Rs.50.25 – 50.35 per litre in bulk respectively plus GST as applicable.

While in the month of January 2020, India imported 302773 MT of Base Oil, India imported the huge quantum in small shipments on different ports like 181877 MT (60%) into Mumbai, 23623 MT (8%) into Hazira, 22327 MT (7%) into JNPT, 20042 MT (7%) into Chennai, 19825 MT (7%) into Pipavav, 15463 MT (5%) into Mundra, 13473 MT (4%) into Kolkata, 3647 MT (1%) into Kandla and 2496 MT (1%) into Other Ports.