India’s Russian oil imports hit 4-month high in November, up 3% on month
India’s Russian oil imports in November rose to a 4-month high of 1.6 million barrels per day (bpd), up 3.1% from October, making up about 36% of the nation’s overall imports last month, data obtained from trade sources showed. Russia became India’s top oil supplier this year as the south Asian nation was drawn to Russian oil discounts after some Western companies shunned purchases from Moscow following its invasion of Ukraine in February last year. India, the world’s third biggest oil importer and consumer, has traditionally relied on Middle Eastern producers for meeting the bulk of its oil needs and rarely made purchases from Russia in the past due to high transportation costs. Last month, India overall imported about 4.5 million bpd oil, a decline of about 4.5% from October and a growth of 13% over the same month last year, the data showed. The sources declined to be identified as they are not authorised to speak to the media. Iraq and Saudi Arabia were the next top oil suppliers to India after Russia in November. Higher purchase of Russian oil has dented the share of Middle Eastern oil in India’s crude diet. The share of Middle Eastern oil in India’s November oil imports was about 46% compared with 48% in October, while that of the Commonwealth of Independent States – Russia, Kazakhstan, and Azerbaijan – rose to 39% from 36%, the data showed. In the first eight months of this fiscal year that began April 1, India’s imports of Russian oil rose by 77% to an average 1.7 million bpd, the data showed. Increased Indian imports of Russian oil have also dragged down the share of oil from the member nations of the Organization of Petroleum Exporting Countries in April-November to 48% from about 62% in the same period last year, the data showed.
Adani to invest $100 billion in green energy transition
Billionaire Gautam Adani’s group will invest USD 100 billion in green energy transition over the next 10 years across its ports, power and cement operations as it aims to become a net zero emitter by 2050. The conglomerate is expanding its renewable portfolio to 45 gigawatts as well as building three giga factories to manufacture solar panels, wind turbines and hydrogen electrolysers, it said in a statement. “The portfolio companies will be investing USD 100 billion over the next decade towards achieving energy transition,” it said. The group has set a target to become net zero by 2050 or earlier for five of its portfolio companies — renewable energy firm Adani Green Energy Ltd, power transmission utility Adani Energy Solutions Ltd, ports firm Adani Ports & SEZ Ltd, and cement makers ACC and Ambuja Cements. The portfolio businesses are actively sourcing renewables, electrifying operations and adopting biofuels, and deploying waste heat recovery and energy storage technologies. The road map to net zero transition will require last mile green hydrogen solutions, Adani Group said, adding its businesses have started pilot projects such as development of hydrogen fuel cell electric trucks as part of the switch. Detailing the decarbonisation pathway, the apples-to-airport conglomerate said it is looking to cut Scope-1 emissions by electrification of operations where possible, and adopting green hydrogen and its derivatives (green ammonia) for energy storage, heat and mobility where electrification is not possible. Scope-2 emissions would be cut through sourcing renewable electricity and deployment of waste heat recovery and energy storage technologies such as batteries and hydrogen. “Adani Group plans to invest USD 100 billion in energy transition over the next decade, with 70 per cent of the investments earmarked for clean energy,” it said. It is building giga factories to make 10 GW solar panels, 10 GW of wind turbines and 5 GW hydrogen electrolysers. “Adani’s renewables portfolio is expanding to 45 GW, which would be able to commercialize 3 million tonnes per annum of green hydrogen,” it added. Group chairman Gautam Adani had in recent days shared details of the green investments. “Our commitment to achieving 45 GW of renewable energy by 2030 initiative will help cut annual emissions by an amount equivalent to 80 million tonnes of CO2,” he said in a post on X, formerly Twitter. This reduction would be comparable to eliminating the emissions from petrol cars driving 480 billion kms each year.
Oil demand growth in India to taper in 2024 after bumper years
Oil demand growth in the key Asian market of India is set to slow next year as the spurt in consumption that followed the pandemic fades, echoing a slowdown in China and presenting a fresh headwind for prices. Consumption will expand 150,000 barrels a day in 2024, down from about 290,000 barrels a day seen from 2021 to 2023, according to Rystad Energy Head of Oil Trading Mukesh Sahdev. The drop will return growth near the pace seen from 2011 to 2019, he said. The International Energy Agency, meanwhile, sees growth halving to 100,000 barrels a day, according to its November report. Oil prices have tumbled this quarter on persistent concerns that global supplies are outpacing demand. The drop comes despite plans for deeper output cuts by the Organization of Petroleum Exporting Countries and its allies, with production expanding elsewhere, including in the US. At the same time, crude demand growth is expected to slow next year, casting a pall over the outlook. India is the third-biggest crude consumer, and a vital market for producers from the Middle East as well as from Russia, with Moscow boosting flows after the 2022 invasion of Ukraine. India’s economy has been expanding at a rapid clip — the economy grew 7.6% in the third quarter — lifting demand for gasoline, diesel and other products. While overall oil consumption is at record, the rate of expansion will ease as the one-off lift following the pandemic passes. It is a similar picture in China, the world’s biggest crude importer. In 2024, the country will consume an additional 500,000 barrels a day, according to the median of estimates from 12 industry consultants and analysts surveyed by Bloomberg this month. That’s less than a third of the increase in 2023. The more challenging outlook — coupled with skepticism about the ability of OPEC+ to deliver on planned cuts — has weighed on Brent crude, the global benchmark. After nearing $98 a barrel in late September, prices are now on course for a third consecutive monthly drop. Futures were last near $75. Consultancy FGE is also among those forecasting a slower pace of Indian demand growth in the new year. Dylan Sim, a senior analyst, sees consumption expanding by 20,000 barrels a day less than in in 2023.