The COVID-19 disruptions have changed the structure of the country’s oil and gas sector with the share of OPEC crude in Indian oil imports falling to a decade-low level in July.
As per data with industry sources, the oil cartel’s share in India’s oil imports fell to about 67 percent in July as against highs of 75-80 percent maintained earlier.
While the share of OPEC crude has been reducing for some time in wake of India expanding its oil import basket to include newer territories in Africa, South, and North America, the fall in July has come in wake of COVID-19 which has squeezed demand in the domestic market.
In July, India’s oil imports had also fallen by 36.6 percent (YoY) to 12.3 million tonnes, the lowest in a decade. The demand is also low on account of restricted movement of vehicles that is the case during the monsoon months.
The lower domestic demand has also pushed Indian refiners to operate their refineries at 70-80 percent capacity. This means they are using less crude to produce products. This has also impacted imports of crude.
Iraq and Saudi Arabia are the two of the country’s largest oil sourcing markets. Iraq currently enjoys the top position among markets that supply crude to India.
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