Team News Riveting
State-owned refiners have reportedly stopped buying crude oil from the companies having links to China.
Even, it would not use the vessels hired for transporting the oil products.
Last week, Indian state refiners decided to stop sending crude import tenders to Chinese trading firms underlining it had stopped buying crude oil from China-linked companies. After New Delhi’s recent regulation aimed at restricting imports from countries that it shares a border with.
India’s state oil majors have also decided not to use vessels linked to China. Experts said it would not have much impact on oil trade flows because Chinese vessels were limited. Most of the tankers are from Liberia, Panama and Mauritius.
Meanwhile, reports by rating agencies estimated that imports of crude oil would fall by 8.9 per cent during (financial year) FY21 (4.14 mb/d) given the lack of demand of crude oil by Indian refiners.
India had imported 4.5 million barrels per day (mb/d) during FY20. Refiners have stocked up on cheap crude oil as directed by the government but the demand remains dull as the lockdown has not completely been lifted.
India imported 3.4 mb/d during FY21 (April-July) compared with the 4.5 mb/d of crude oil imported during FY20 (April-July). Imports of crude oil have fallen due to the fall in demand of petro-products with increasing COVID-19 cases and rise in prices of petro-products.
India imported crude mainly from Iraq, Saudi Arabia, Kuwait and UAE.
