Why India's June oil imports hit their lowest in nine months.

Demand was muted in April, May after an earlier uptick, leading to high inventories

By Er. Aditya Kumar (B. Tech)

* June imports fall about 7% on the month to 3.9 million BPD.

* High fuel inventories curb India's crude imports.

* April-June imports rise 11.7% year-on-year.

India's oil imports fell in June, hitting their lowest since October 2011, as refiners curbed purchases due to maintenance turnarounds and weaker fuel demand, data from industry sources showed.

India, the world's third-biggest oil consumer, and importer received 3.2 million barrels per day (BPD) of oil in June, a decline of 0.4% from May and about 28.5% from a year ago, the data showed.

In June, India’s crude oil imports fell to their lowest in nine months, as refiners curtailed purchases amid higher

fuel inventories due to low consumption and renewed COVID-19 lockdowns in the previous two months. The world’s third-biggest oil importer and consumer, India shipped in about 3.9 million barrels per day (BPD) of crude last month, about 7% down from May but 22% higher from year-earlier levels, tanker arrival data obtained

from trade sources showed. India is the second major importer in Asia, after China, to post a slump in last.

Month’s crude imports. After an uptick in India’s fuel demand in February and March, the country’s refiners cranked up crude processing and oil imports, said an Indian refining official who declined to be named. He is not authorized to speak to the media. However, fuel demand fell sharply in April and May after the government imposed restrictions to curb the second wave of infections, leaving refiners with high fuel inventories.

We had enough inventory of refined fuel, so there was little scope to raise crude imports,” the source said, adding that exports were unattractive as profits were low. However, crude imports between April and June rose 11.7% year-on-year to 4.1 million BPD as the lockdown curbs were not as severe as last year when COVID-19 first hit the nation. Last month, Iraq stayed as the top oil supplier to India, followed by Saudi Arabia. The United Arab Emirates climbed four notches to emerge as the third-biggest supplier, while Nigeria rose to No.4 from No.5 in May.

The United States was at No.5, followed by Canada.

The share of oil from the Middle East in India's imports rose to about 59% in June from 53% in the prior month, while that of other regions declined, data showed.

Main Point

In June, India’s crude oil imports fell to their lowest in nine months, as refiners curtailed purchases amid higher fuel inventories due to low consumption and renewed COVID-19 lockdowns in the previous two months.

The world’s third-biggest oil importer and consumer, India, shipped in about 3.9 million barrels per day (BPD) of crude last month, about 7% down from May.

After China, India is the second major importer in Asia to post a slump in last month’s crude imports.

Fuel demand fell sharply in April and May after the government imposed restrictions to curb the second wave of infections, leaving refiners with high fuel inventories.

Last month, Iraq stayed as the top oil supplier to India, followed by Saudi Arabia. The United Arab Emirates climbed four notches to emerge as the third-biggest supplier, while Nigeria rose to No.4 from No.5 in May