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Business News/ Economy / India's crude oil output up 1.3% to 2.5 MMT in October, imports rise after four months of declines: PPAC
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India's crude oil output up 1.3% to 2.5 MMT in October, imports rise after four months of declines: PPAC

Crude oil imports increased by 2.2 per cent and by 0.6 per cent during October 2023 and April-October 2023 respectively, compared to the corresponding period of the previous year.

India's domestic domestic crude oil production in October was 2.5 MMT. (Picture Credits: ONGC official website)Premium
India's domestic domestic crude oil production in October was 2.5 MMT. (Picture Credits: ONGC official website)

India produced a total of 2.5 million metric tonnes (MMT) of crude oil in October 2023 - registering a growth of 1.3 per cent compared to the year-ago period, according to Petroleum Planning & Analysis Cell (PPAC). Out of 2.5 MMT, Oil and Natural Gas Corporation (ONGC) produced 1.6 MMT of crude oil while Oil India Limited (OIL) and and private sector producers contributed 0.3 MMT and 0.6 MMT, data released by the Oil Ministry showed.

India's crude oil imports rose in October, after falling in the previous four months, as the world's third biggest oil importer and consumer shipped in more fuel to meet winter demand. According to PPAC data, crude oil imports increased by 2.2 per cent and by 0.6 per cent during October 2023 and April-October 2023 respectively, compared to the corresponding period of the previous year. 

Also Read: Crude below $80/barrel to support OMCs in near-term; ONGC, Oil India key beneficiaries of high prices

The net import bill for oil and gas was $11.8 billion in October 2023 compared to $11.9 billion in October 2022. Out of this, crude oil imports constitutes $11.7 billion, liquified natural gas (LNG) imports were $1.2 billion and the exports were $3.6 billion during October 2023.

The Indian basket crude price averaged $90.08/bbl during October 2023 compared to $93.54/bbl during September 2023 and $90.70/bbl during October 2022. The price of Brent Crude averaged d $91.05/bbl during October 2023 compared to $94.00/bbl during September 2023 and $93.33/bbl during October 2022.

The production of petroleum products was 21.8 MMT during October 2023 which is 4.2 per cent higher than October 2022. Out of above 21.5 MMT, , 21.5 MMT was from refinery production and 0.3 MMT was from fractionator.

On the other hand, natural gas consumption (including internal consumption) for October 2023 stood at 5,447 MMSCM (million metric standard cubic meters), which was 13.4 per cent higher than the corresponding month of the previous year, according to the official data.

The cumulative natural gas consumption for the current financial year till October stood at 38,368 MMSCM, which was higher by 8.8 per cent compared with the corresponding period of the previous year.

In addition, LNG import for October 2023 was 2,337 MMSCM which was 18.2 per cent higher than the corresponding month of the previous year. The cumulative import of 17,753 (P) MMSCM for the current financial year till October 2023 was higher by 13.4 per cent compared with the corresponding period of the previous year.

The gross production of natural gas increased by 9.3 per cent at 3,161 MMSCM in October from last year. The cumulative gross production of natural gas was 21,040 MMSCM for the current financial year till October, higher by 4.8 per cent compared with the corresponding period of the previous year.

Meanwhile in September 2023, India produced a total of 2.4 MMT of crude oil - registering a steady growth per cent compared to the year-ago period. The net import bill for oil and gas was $10 billion in September 2023 compared to $10.8 billion in September 2022, according to PPAC.

India's fuel consumption also rose to a four-month high in October, as increased industrial activity boosted sales during the festive season and the onset of winter, government data showed earlier in the month.

Also Read: From $89 to near $100 and back: How Brent crude moved since last Diwali over OPEC+ cuts & more

"With demand picking seasonally up as we approach the end of the year, there was a higher need to import more crude to cover higher demand for refined products. The year-on-year rise in imports is due to the rise in domestic demand, supported by solid economic growth," UBS analyst Giovanni Staunovo told news agency Reuters.

The Organisation of Petroleum Exporting Countries has postponed its oil output policy decision to November 30, from November 26, scheduled earlier. This has led to a decline in international crude oil prices and also got investors speculating further supply cuts.

OPEC's share in India's oil imports in October hit a 10-month high as refiners bought more crude from Saudi Arabia and the United Arab Emirates after discounts narrowed for Russian oil that month, trade data showed. Indian refiners have slowed Russian oil imports in recent months from the nearly 2 million barrels per peak seen earlier this year as discounts have narrowed.

India is dependent on imports to meet over 85 per cent of its crude oil requirements and around 50 per cent of its natural gas requirements. 

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ABOUT THE AUTHOR
Nikita Prasad
Nikita covers business news and has been producing news on digital platforms since 2018. She writes on economy, policy, markets, commodities, industry. Her core areas of interests include infrastructure, energy, oil and gas, railways, and transport/mobility. She has worked for business news channels like Moneycontrol, NDTV Profit, and Financial Express in the past. If you have story ideas/pitches/reports or quotes/views to share, reach her at nikita.prasad@htdigital.in.
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Published: 23 Nov 2023, 06:50 PM IST
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