Petroleum export earnings decline as crude costs fall

India, having expanded the export markets for refined petroleum merchandise, noticed a steep fall in earnings from petroleum shipments within the April-October interval this yr attributable to declining crude oil costs, world financial slowdown, an increase in home consumption, and shrinking reductions on Russian oil.

In response to knowledge from the federal government’s Niryat portal, the export worth of petroleum merchandise stood at $45.56 billion in April-October 2023, down 17.84% from $55.45 billion within the year-ago interval.

Petroleum exports to South America, Africa, South Asia, West Asia-North Africa (WANA) and South-east Asia noticed a decline in worth phrases.

Nevertheless, earnings from exports to Europe, North America and CIS rose.

The worth of Brent crude has declined 3% within the final yr.

A commerce ministry spokesperson didn’t reply to emailed queries.

Apparently, India imports most of its petroleum necessities regardless of being a key refining hub in Asia, with an annual put in capability of 250 million tonnes throughout 23 refineries.

Since early 2022, India’s oil imports have been boosted by sanctions-hit Russia, which bought oil at a reduction.

In response to Reuters, the share of Russian oil in India’s total imports rose to about two-fifths throughout the first half of the present monetary yr, consolidating Moscow’s place as the highest provider as Indian refiners curbed buy from the West Asia.

India imported on common 1.76 million barrels per day (bpd) of Russian oil from April to September 2023, greater than double the 780,000 bpd within the year-ago interval.

Nevertheless, attributable to narrowing of reductions by Russian suppliers, India’s import of Russian oil has slowed down.

Information from Kpler and Vortexa confirmed a 12% and eight% decline in India’s month-to-month consumption of Russian oil in October from the earlier month.