The stake was 71.6% in FY22, compared to 71.9% in FY21; OPEC oil accounted for 88% of India’s crude oil imports in FY2008
The stake was 71.6% in FY22, compared to 71.9% in FY21; OPEC oil accounted for 88% of India’s crude oil imports in FY2008
OPEC’s share of India’s oil imports for FY22 was flat year-on-year and has fallen sharply over the past six years as refiners bought short-haul crude from West Asia to counter rising world prices.
Total crude oil imports from the world’s third-largest oil importer and consumer rose 7.2% annually to 4.26 million barrels per day (bpd) in the year ended March 31, ship-tracking data from industry sources showed.
The share of that provided by members of the Organization of the Petroleum Exporting Countries (OPEC) – mainly from West Asia and Africa – was 71.6% in FY22, compared with 71.9% in FY21, the data showed.
OPEC oil accounted for about 88% of India’s crude oil imports in FY2008.
“OPEC is increasing production by about 250,000 bpd almost every month and India is a nearby market for it. At the same time, Indian refiners have increased crude oil processing to meet rising fuel demand,” said Refinitiv analyst Ehsan Ul Haq.
In the coming months, OPEC’s share of India’s total imports could fall as refiners in Asia’s third-largest economy buy cheaper Russian oil, which has been shunned by some Western countries and companies following Russia’s invasion of Ukraine.
Russian oil continued to account for less than 1% of Indian crude oil imports in FY22.
A rally in global oil prices from November prompted Indian refiners to include “full volumes, or perhaps more than committed volumes” in their annual contracts with West Asian producers, Haq said.
Indian refiners’ intake of medium to heavy oil grades, mainly from western Asia, rose as the country’s easing of the COVID-19 lockdown boosted domestic fuel demand.
“The profit margins on diesel have been staggering and heavy Middle Eastern grades are rich in diesel,” said Mr. Haq.
India’s fuel demand rose 4.3% last fiscal year, the largest increase in four years.
West Asian oil’s share of India’s imports improved to 64% in FY22 from 62% a year earlier, while Latin America and Africa declined.
