Indian refiners’ September crude processing increases on strong demand
- September Refinery Crude Oil Throughput Increases 2.9% YoY
- Indian refiners operated at 88.69% of capacity in September
- High oil prices could impact recovery in demand – analyst
October 22 (Reuters) – The throughput of crude oil from Indian refiners in September increased slightly from the previous month, government data showed on Friday, as refineries increased production to meet growing demand.
Refiners processed 4.45 million barrels per day (bpd) (18.21 million tonnes) of crude oil last month, down from 4.36 million bpd in August, which was the lowest in 10 months.
âRefiners have increased throughput to meet demand during the holiday season. Demand is expected to increase from previous months as people travel more during the festivities,â Refinitiv analyst Ehsan Ul Haq said.
On an annual basis, crude oil throughput from refiners in September increased by about 2.9%, while crude oil production fell about 1.7% to about 600,000 b / d (2, 44 million tonnes), according to data.
Indian refiners operated at an average rate of 88.69% of capacity in September, up from 86.89% in August, according to government data.
India’s Reliance Industries Ltd (RELI.NS), the operator of the world’s largest refining complex, imported nearly 12% more oil in September than in August at 1.2 million barrels per day.
“Coal shortages are also causing the switch from some fuels to petroleum-related products, which encourages refiners to increase their production. However, the persistence of high petroleum prices can potentially lead to a destruction of demand,” said Ul Haq.
India’s fuel consumption in September soared as economic activity continued to accelerate, but soaring global oil prices threaten the recovery of the world’s third largest importer and consumer of oil. Read more
Last month, India signaled that a surge in oil prices could accelerate the transition to alternative energy sources. Read more
Meanwhile, natural gas production jumped 26.6% to 2.90 billion cubic meters, the data showed.
Reporting by Brijesh Patel and Bharat Govind Gautam in Bengaluru Editing by Mark Potter
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