India's Rising Crude Demand Bodes Well For Higher Refinery Runs And Imports

According to government statistics, India’s crude oil imports increased in February 2023. This demand increase is attributed to the country’s fuel consumption, which reached a two-decade high in February 2023. India, the world’s third-largest oil importer and consumer, has been having a strong economic outlook. 

India’s crude oil imports have risen by 8%, and that is not it, India’s demand for crude oil is anticipated to grow further in the coming months, and so is the country’s economy. Cheaper Russian crude oil, as well as rising temperatures and increased travel, are expected to play a part in meeting this demand.

Crude Oil Exports And Imports

• Russia Tightens Its Grip– Russian crude oil imports to India have steadily increased over the years, reaching a new peak in February 2023, while African crude oil imports fell to their lowest level in 22 years. Indian Oil Corporation, India’s largest refiner, has decreased its annual oil purchases from Kuwait by 20% while increasing its term crude volume with Iraq’s Oil Marketing Company by 20,000 bpd.
• Exports On The Rise- Despite India’s intentions to extend export restrictions on diesel and gasoline after the current fiscal year concludes this month, product exports increased by 12% month on month in February 2023, with diesel accounting for 2.15 million tons.

Insight

Rising crude demand in India is anticipated to fuel increased refinery runs and imports in the coming months. Despite the government’s plans to extend restrictions, the rise in exports demonstrates that India’s fuel consumption remains strong, and the economy is poised for growth.

Read More – India’s Fuel Demand Dips In March 2023 After Record High In February 2023