• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 1 hour GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 days How Far Have We Really Gotten With Alternative Energy
  • 10 hours The United States produced more crude oil than any nation, at any time.
  • 2 days China deletes leaked stats showing plunging birth rate for 2023
  • 1 day The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 6 days Bad news for e-cars keeps coming
Russian Oil is Fueling Geopolitical Fragmentation

Russian Oil is Fueling Geopolitical Fragmentation

Russia's invasion of Ukraine has…

Southeast Asia Bets Billions On Pumped Hydro Energy Storage

Southeast Asia Bets Billions On Pumped Hydro Energy Storage

Southeast Asia's pumped hydro capacity…

India’s Top Refiner: Oil Processing Won’t Be Back To Pre-Crisis Levels Soon

Indian Oil Corporation (IOC), the country’s biggest refiner and fuel retailer, doesn’t expect its capacity utilization to return to pre-pandemic levels in the near future, IOC’s chairman S.M. Vaidya told reporters on Friday.

IOC had been gradually boosting its refinery capacity utilization since May, but utilization has been down in recent weeks as many states in India re-imposed localized lockdowns, after the nationwide lockdown in April-May, following a surge in COVID-19 cases.  

IOC’s capacity utilization has dropped to 75 percent these days, from around 93 percent in the first week of July, Indian media quoted the company as saying alongside its results for the first quarter of its 2020-2021 financial year.

In May, India’s fuel demand picked up pace from the April lows, and IOC began to gradually boost operations across its refineries, aiming to raise utilization to 80 percent by the end of May, compared to 45 percent in early April.   

At the end of June, Indian Oil Minister Dharmendra Pradhan said that fuel demand in India was set to rebound to pre-crisis levels by the end of September.

Yet, India’s crude oil imports slumped in June to their lowest levels since 2011, with oil refiners buying less crude because of maintenance and weaker demand, according to data from industry sources reported by Reuters.

Indian refiners are now cutting processing rates because fuel demand – up from the lows in April and May – has slowed this month as fuel prices are higher and parts of India are again under local lockdowns, while the monsoon rain season is also stalling economic activity and transport, officials at refineries told Reuters this week.

Shell’s chief executive Ben van Beurden said on the supermajor’s earnings call on Thursday that India is the worst-performing market in terms of demand, while China continues to be resilient.

ADVERTISEMENT

“The worst-performing market is India, 45% down. So, we are dealing with a very wide tapestry of market recovery archetypes,” van Beurden said.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News