October crude oil imports posted their steepest fall since July and seventh consecutive month-to-month year-on-year decline as rising COVID-19 instances restricted mobility and curbed consumption, authorities information confirmed on Monday.
Crude oil imports into the world’s third-biggest oil importer and shopper fell 21.6 per cent from a 12 months earlier to 15.14 million tonnes, or 3.58 million barrels per day (bpd), information from the Petroleum Planning and Analysis Cell (PPAC) of the Ministry of Petroleum & Natural Gas confirmed.
“Due to the surging coronavirus cases, travel is still being avoided in the tier two and tier three cities and that along with muted air travel is weighing on oil demand in India,” stated Kunal Shah, head of analysis at Nirmal Bang Commodities in Mumbai, India.
“Also, when we come across such a huge fall (in imports), it generally points towards the fact that the existing demand is already being met by inventory from prior months.”
The import of oil merchandise additionally slumped 53 per cent to 1.65 million tonnes in October.
Meanwhile, exports of refined merchandise fell 35.7 per cent in October from a 12 months in the past to three.84 million tonnes, and have been down 20 per cent from 4.80 million tonnes in September.
Diesel shipments continued to carry a serious share of the entire exports however have been down 24 per cent on 12 months to 2.37 million tonnes and fell 11.2 per cent on a month-on-month foundation.
Exports of gasoline, or petrol, have been down 19.eight per cent to 797,000 tonnes versus a 12 months in the past.
India has the second-highest variety of infections on the earth after the United States with 9.14 million.
But wanting forward, manufacturing unit exercise is selecting up and oil demand ought to rise within the subsequent two to a few months, Mr Shah stated.
India’s manufacturing unit exercise in October expanded at its quickest tempo in additional than a decade.