India's crude oil imports touched 4-month high this October
What's the story
India experienced a 5.9% increase in crude oil imports in October, totaling 18.53 million metric tons, as reported by the Petroleum Planning and Analysis Cell (PPAC).
This growth comes after four months of decline and is due to heightened fuel demand during the festive season and colder weather.
UBS analyst Giovanni Staunovo stated, "With demand picking seasonally up as we approach year-end, there was a higher need to import more crude to cover higher demand for refined products."
Details
Fuel consumption and product imports increase
Fuel consumption in India reached a four-month peak in October, fueled by increased industrial activity.
PPAC data also showed that product imports rose by 13.4% to 4.41 million tons compared to October last year, while product exports grew by 12.6% to 4.47 million tons during the same period.
On a monthly basis, the product imports expanded by 7.6% this October, while exports declined by 7%.
What Next?
OPEC's share in India's oil imports hits 10-month high
In October, OPEC's share of India's oil imports hit a 10-month high as refiners purchased more crude from Saudi Arabia as well as the United Arab Emirates.
This change happened after discounts for Russian oil narrowed that month, leading Indian refiners to reduce Russian oil imports from the nearly two million barrels peak seen earlier this year.
The year-on-year increase in imports is connected to domestic demand growth, supported by a strong economy.