UPDATE 1-OPEC's share of Indian oil imports in Oct hits lowest since 2011

Published 19/11/2019, 01:45
© Reuters.
RELI
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* Indian oil import volumes rise from September's low levels

* Iraq secures top oil supplier status, Saudi slips to No. 2

* Nigeria third-biggest supplier followed by United States

(Updates to add graphic of OPEC's share of oil sales to India)

By Nidhi Verma and Gavin Maguire

NEW DELHI, Nov 18 (Reuters) - OPEC'S share of India's oil

imports fell to 73% in October, its lowest monthly share since

at least 2011, tanker data from sources showed, as refiners

shipped in fuel from the United States and other suppliers.

India, which usually imports about 80% of its needs from

members of the Organization of the Petroleum Exporting Countries

(OPEC), has been diversifying its sources of oil as local

refiners have upgraded plants to process cheaper crude grades.

India, the world's third-biggest oil importer, shipped in

4.56 million barrels per day (bpd) of oil in October, about 3.3%

less compared with a year ago, data showed. Of that, it bought

3.43 million bpd from OPEC.

OPEC's share of India's imports in September was about 81%

although total volumes were lower, as the South Asian nation cut

imports to a three-year low due to maintenance at some

refineries.

OPEC oil output dipped to an eight-year low in September

after attacks on Saudi oil plants led to production cuts, a

Reuters survey showed. The kingdom's output has since recovered.

In October, Iraq replaced Saudi Arabia as India's top oil

supplier, tanker arrival data showed, with refiners cutting

purchases of the more expensive Saudi oil.

Sources who supplied the data asked not to be named.

"Saudi had raised its official selling price (OSP). That led

to some buyers migrating to Iraqi and other producers," said

Ehsan Ul Haq, an analyst with Refinitiv.

Saudi Arabia raised its October OSP for its Arab Light grade

for Asia by $0.60/barrel compared to a $0.35/barrel increase in

Iraq's Basra Light.

To make up for lower Saudi purchases, India also boosted

purchases from Nigeria, its third-biggest supplier in October,

as well as from Kuwait and Mexico.

India shipped in a record 336,000 bpd of U.S. oil in

October, about 7.5% of total imports, as private refiner

Reliance Industries RELI.NS bought three tanker cargoes, data

showed. The United States was Indian's fourth-biggest supplier

in October.

"Indian demand for gasoil has been falling but overall Asian

demand has been relatively strong because of new marine fuel

rules from January. And good diesel cracks is prompting refiners

to buy distillate rich crudes like that of Nigeria," Haq said.

Refining margins or cracks for 10 ppm gasoil GO10SGCKMc1

traded at $15.46 per barrel over Dubai crude during Asian trade

on Monday. Cash premiums for the fuel GO10-SIN-DIF climbed to

34 cents per barrel to Singapore quotes, compared with 31 cents

per barrel on Friday.

India's fuel demand in October declined by 1.4% from a year

earlier, and its diesel consumption fell by the steepest in

about three years, government data showed on Thursday.

TABLE-India's Oct oil imports down 3.3% y/y- trade data

refiner Nayara Energy's October oil imports

refiner Reliance's October imports crude oil imports by origin https://tmsnrt.rs/2XpKoJF

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