Base Oil Report
Indian energy demand is taking a big hit as Covid-19 runs rampant across the country. But uncertainty around when the virus wave will subside and the lack of a unified government response has left the oil industry in the dark as to how quickly consumption might pick up again. Te demand destruction over the last couple of months has been less severe than last year when the government imposed the world’s biggest national lockdown. However, the lack of a coordinated effort to shut down activity to halt the virus’s spread will likely lead to a longer, although less pronounced, economic slump. Diesel and gasoline, which account for more than half of oil consumption in India, are bearing the brunt of localized lockdowns. Sales of the two fuels at the three biggest retailers are about a third lower so far in May compared with pre-virus levels two years earlier. That’s not as bad as April 2020, however, when demand nearly halved. This time around, more factories have remained open and cargo movements between states haven’t been as badly affected.
India Exported 29947 MT of Light & Heavy White Oil in March 2021. Most of the Base Oil was exported to Kenya, Tanzania, Brazil and Bangladesh with smaller quantities exported to Latvia and Chile. Some of the largest Light & Heavy White Oil exporters during the month were Panama Petrochem Ltd with 8213 MT, Gandhar Oil Refinery (India) Ltd with 5301 MT, Savita Oil Technologies Ltd with 4401 MT, Savita Oil Technologies Ltd with 3645 MT, Apar Industries Ltd with 3645 MT, Raj Petro Specialities Pvt Ltd with 2687 MT & Indian Oil Corporation Ltd with 2600 MT.
India Exported 2943 MT of Transformer Oil in March 2021. Most of the Base Oil was exported to Saudi Arabia, Bangladesh, Turkey and Indonesia with smaller quantities exported to Qatar and Algeria. Some of the largest Transformer Oil exporters during the month were Apar Industries Limited with 1671 MT, Savita Oil Technologies Limited with 568 MT and Raj Petro Specialities Pvt. Ltd. with 464 MT.
Month | N–500 Korea Origin | SN–150 Iran Origin | N–70 Korea Origin | RPO Drums (Aromatic Extract) |
---|---|---|---|---|
Mar-21 | 775–805 | 810–830 | 755–780 | 1020–1045 |
Apr-21 | 880–925 | 915–965 | 860–895 | 1230–1255 |
May-21 | 990–1030 | 980–1010 | 885–920 | 1380–1430 |
Since March 2021, prices have increased by USD/PMT in May 2021 | 220 (28%) | 175 (21%) | 135 (18%) | 373 (36%) |