Abu Dhabi gives onshore block production license to India’s IOC-BPCL JV
Abu Dhabi has awarded oil and gas production rights for an onshore block to a joint venture of Indian state-run refiners Bharat Petroleum Corp Ltd and Indian Oil Corp , BPCL said in a statement The Supreme Council for Financial and Economic Affairs of Abu Dhabi has granted rights to Urja Bharat Pte Ltd, an equal joint venture of Indian Oil and Bharat PetroResources, BPCL’s exploration and production arm. The Indian companies have been given production rights for onshore block 1 after completing the exploration phase awarded in 2019.
OMCs may reduce fuel prices if crude stays low: Petroleum Secy
State-run oil marketing companies (OMCs) may consider lowering petrol and diesel prices if international crude oil prices remain subdued for an extended period, said Pankaj Jain, secretary at the ministry of petroleum and natural gas. His statement comes as Brent crude has traded below $75 per barrel for over a week. “OMCs will consider a cut in retail prices if international prices of crude oil remain subdued for a longer duration,” Jain told reporters at the sidelines of the International Conference on Green Hydrogen. He added that the state-run companies, along with the government, would monitor price trends over time before making a decision. Earlier this month, global oil prices reached three-year lows due to demand concerns. Currently, Brent crude for November contracts on the Intercontinental Exchange is trading at $71.81 per barrel, up 1.7% from the previous close. This drop in oil prices is expected to improve the profitability of OMCs, which could pass on the benefit to consumers through price cuts. India imports 85% of its energy requirements, making international oil prices a key factor in domestic fuel pricing.
Russia’s search for new crude markets helps India cut its oil import bill
Russia’s diligent efforts to find markets for its crude oil and refined fuels since the Ukraine war, and ongoing tensions in the Red Sea are yielding conflicting outcomes for India’s crude purchases and diesel exports. Indian refiners are benefiting from lower crude prices but diesel exports to Europe are facing major challenges on the volume and margin front. Russian oil started flooding the Indian market soon after the start of the Ukraine war in February 2022 as European nations began closing their markets to Moscow. Russia’s share in India’s crude imports spiralled from less than 1% before the war to 42% in the first five months of this fiscal year, pushing down the share of other key suppliers like Iraq, Saudi Arabia, the UAE, and the US, according to energy cargo tracker Vortexa. At the same time, Russia’s aggressive inroads into the South American diesel market has negatively impacted Indian refiners. “Europe, which was a key market for Indian diesel, saw increased competition from US Gulf coast supplies. This is an effect of Russian diesel eating into the share of US exports to South America, which forced US exports to divert towards Europe instead and, in turn, led to lower Indian exports,” said Rohit Rathod, an analyst at Vortexa.