India's crude oil imports from Russia reached a record 2.8 million barrels per day in July, constituting over half of its purchases. Concurrently, Indian refiners increased sourcing from West Asian suppliers as oil flows through the Strait of Hormuz normalized.
Indian refiners are seeking alternative crude oil suppliers like Venezuela and Angola and considering rerouting shipments around Africa to avoid the Red Sea. This comes as Houthi attacks disrupt vital shipping lanes, pushing Brent crude prices above $100 a barrel.
Beijing has eased refined fuel export restrictions due to high global oil prices and ample reserves, but introduced compliance requirements for refiners to maintain inventory levels, a cautious move influenced by the collapse of the interim US-Iran truce.
India's imports of Russian crude oil reached a record high in June. Reports suggest India is supplying gasoline to Russia, likely through traders, to meet domestic demand exacerbated by Ukraine war-related refinery damage. Indian refiners can produce the required gasoline grades.
Indian refiners are exploring purchases of Iranian crude if US waivers are extended beyond August. Despite fully contracted August shipments, they may buy if discounts are significant, though Russian oil currently offers steeper discounts. India's imports from Russia have recently hit record levels.
Saudi Arabia dramatically cut crude oil prices by $11 a barrel for August, the steepest drop in 26 years, signaling intense competition among producers. This move, following a previous $6 cut, brings oil prices to pre-Feb 28 levels and is expected to benefit India by reducing refiner losses and government subsidy bills.
State-run Indian oil companies absorbed over Rs 75,000 crore in losses in Q1 FY24. While petrol and diesel sales may reach break-even in 7-10 days if crude prices stabilize around $75/barrel, LPG sales continue to incur losses. OPEC+ production hikes aim to ease global prices.
Indian Oil Corp and Hindustan Petroleum Corp have collectively purchased approximately 7 million barrels of crude oil via recent tenders. Deliveries are expected between August and September, enhancing India's energy supply.
India's state-owned oil refiners Indian Oil Corp and Hindustan Petroleum Corp purchased approximately 7 million barrels of crude oil last week. This comes as the country's crude inventories have recovered significantly after disruptions.
Four major South Korean oil refiners, including HD Hyundai Oilbank and SK Energy, have been indicted for violating fair trade laws. Prosecutors allege they colluded to artificially inflate domestic fuel prices, with the anticompetitive impact estimated at around $20 billion following the Middle East conflict.
Prosecutors have indicted four major South Korean refiners, HD Hyundai Oilbank, SK Energy, GS Caltex, and S-Oil, along with company officials, in a 26 trillion-won ($17 billion) price-fixing case. The companies are accused of colluding to raise petroleum prices following the U.S.-Iran war, undermining market competition.
India's oil imports reached a record 4.93 million barrels per day in June, with Russia supplying over half. This surge occurred despite Middle East tensions, highlighting India's successful diversification and procurement strategies.
Indian refiners are unlikely to significantly increase purchases of Iranian crude despite a 60-day US sanctions waiver. Factors limiting new buying include uncertainty over the waiver's duration, payment constraints, and existing supply commitments, according to analyst Sumit Ritolia.
Indian refiners are being offered discounted Iranian crude and LPG by NIOC and middlemen following a 60-day US sanctions waiver. Despite renewed interest, refiners have limited immediate capacity due to existing commitments, and payment uncertainties delay commercial talks.
The Strait of Hormuz is experiencing increased oil and LNG shipments from Qatar and other Gulf nations for the first time since the war began. This follows improved regional activity and progress in US-Iran talks, easing tensions. Deals with Taiwan and India mark the first Qatari crude sales to Asia since the conflict.
India's oil refiners are set to benefit from falling crude prices, the reopening of the Strait of Hormuz, and increased supply options from Russia, Iran, and West Asian nations. This could lead to strong profits for the July-September quarter, despite lingering geopolitical uncertainties.
Kunal Shah, founder of Indian fintech CRED, will head WhatsApp. Meta also invested $900M in CRED. Meanwhile, the US has temporarily lifted sanctions on Iranian oil exports, potentially allowing Indian buyers to resume imports after years of restrictions.
A new US-Iran memorandum of understanding allows Tehran to resume oil and fuel exports, potentially boosting the Iranian economy by over $60 billion annually. The deal eases sanctions, enabling wider sales and access to frozen funds, though critics warn of strengthening the regime.
The Strait of Hormuz reopens after over 100 days of disruption, releasing 62 million barrels of crude. A US-Iran peace deal allows traffic resumption, but the influx may lead to an oversupplied market, concerning Asian refiners.
Indian refinery executives anticipate oil prices dropping below $80/barrel within weeks if a US-Iran deal is signed Friday, reopening the Strait of Hormuz. This would end hostilities, lift the US naval blockade, and allow Iranian crude back to global markets.
Falling global energy prices, potentially due to a US-Iran agreement, could offer relief to Indian refiners and gas consumers. Brent crude has dropped to nearly $83/barrel, impacting India's 88% crude import dependence. LNG prices, though moderated, remain elevated.
Indian refiners have secured sufficient crude oil and LPG supplies to last through August and mid-July, respectively, by increasing purchases from suppliers like ADNOC and through spot tenders, amid ongoing Middle East energy supply disruptions.
Indian refiners are adjusting plants to process difficult crude grades and boost fuel output due to disruptions from the Iran conflict and potential Strait of Hormuz closure. Technology licensors like Lummus Technology are assisting in optimizing yields and adapting assets.
Indian refiners increased oil imports from Venezuela, Brazil, Angola, and Nigeria due to Middle East supply disruptions caused by the Israel-US war. Russia remained a key supplier, though its share decreased. Overall imports were steady in April but down year-on-year.
