India’s February fuel demand hits 24 year high
India’s fuel demand hit its highest level in at least 24 years in February, data showed on Thursday, with industrial activity in Asia’s third biggest economy boosted by cheap Russian oil. Consumption of fuel, a proxy for oil demand, rose by more than 5% to 4.82 million barrels per day (18.5 million tonnes) in February, its 15th consecutive year-on-year rise, data showed. Demand was the highest recorded in data compiled by the Indian Oil Ministry’s Petroleum Planning and Analysis Cell (PPAC) going back to 1998. The strength highlights a combination of profitable refining from record Russian crude imports in February, total utilization for primary distillation across India and still-robust domestic consumption, said Viktor Katona, lead crude analyst at Kpler. Katona forecasts demand in March at 5.17 million barrels per day (bpd) and then the seasonal monsoon-driven slowdown will lead to it to drop to 5 million bpd in April-May. Sales of gasoline, or petrol, rose 8.9% year-on-year to 2.8 million tonnes in February, while diesel consumption climbed 7.5% to 6.98 million tonnes. Sales of jet fuel jumped more than 43% to 0.62 million tonnes, the data showed. “For 2023, the strongest demand growth rate is projected to be in jet fuel, followed by gasoline and then diesel/gas oil,” said Alan Gelder, VP Refining, Chemicals and Oil Markets at Wood Mackenzie. While fuel sales data showed total volumes of both gasoline (motor spirit) and diesel (HSD) fell in February relative to January, they grew strongly on a daily consumption basis as February is a short month, Gelder noted. February relative to January, they grew strongly on a daily consumption basis as February is a short month, Gelder noted. Cooking gas, or liquefied petroleum gas (LPG), sales slipped by 0.1% to 2.39 million tonnes. Sales of bitumen, which is used for building roads, jumped 21.5% month-on-month, while fuel oil use declined slightly more than 5% in February, compared with January.
Pakistan Seeks To Buy Russian Oil At $50 Per Barrel
Pakistan is looking to buy Russian oil at $50 per barrel, media reported on Sunday, as the South Asian country is grappling with an economic and foreign reserves liquidity crisis. Pakistan is desperate to import energy at low costs, after it was outspent on the market last year when oil and gas prices surged while Pakistani foreign exchange reserves dwindled. A potential purchase of $50 oil from Russia would be $10 below the G7 price cap on Russian crude, below which shipments are still cleared to enjoy insurance and financing services from Western companies. Russia will have to first arrange and complete formalities such as shipping costs, insurance, and mode of payment before replying to Pakistan’s request for heavily discounted Russian crude, according to a report in The News carried by PTI. Pakistan hopes for “good discounts” from Russia, earlier reports have said. Russia, for its part, was initially uncertain whether Pakistan would want to proceed with an oil deal, according to a report in The Express Tribune. Following a recent meeting between Russian and Pakistani officials, Russia has asked Pakistan to purchase and import one cargo as a test case. According to the News, Pakistan will test the cost of landed oil cargo from Russia by importing one cargo. Other reports said last week that the first cargo from Russia—the one to test the costs and increase the “trust” between the parties – could depart from Russia by next month. Pakistan hasn’t been a major importer of Russian oil and gas so far. Many large customers in Asia haven’t joined the price cap mechanism, but China and India, for example – Russia’s top crude oil buyers now – are demanding steep discounts for the Russian grades. Meanwhile, Pakistan’s economic and energy crises have deepened in recent months as the South Asian country is trying to negotiate a new deal for a loan with the International Monetary Fund (IMF).