Novel coronavirus pneumonia is the third largest oil importer in the world, according to the April 23rd oil price report: fuel demand in India is plummeting, as the new crowns and pneumonia cases increase every day, which may lead to a tightening of the market and the recovery of global demand for oil and oil.
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India reported the highest one-day increase in global coronavirus infections since the outbreak began for the second day in a row.
This month, several of India’s largest cities were blocked again as infection cases surged. Traffic restrictions also hurt the fuel intensive trucking industry.
Oil refiners and fuel retailers said India’s total demand for diesel and gasoline this month will fall 20% from March.
India’s demand for all major fuels (diesel, gasoline, aviation fuel and LPG) declined in the first half of April compared with the same period in March. Among them, diesel demand dropped by 3% and gasoline consumption dropped by 5%.
As more and more cities and States implement closures or curfews of various forms, the downward trend in demand will worsen further in late April.
It is said that Indian refineries have begun to reduce the oil processing rate. Officials said that there are still enough oil products in stock, so most of the products have not yet been reduced. If the blockade in Mumbai and New Delhi continues into may, refineries may have to cut production by 10% next month.
Fotios katsoulas, chief liquidity commodity analyst at IHS Markit shipping and trade department, said India’s crude oil imports in April are currently stable and in line with the seasonal pattern, but the recovery of the epidemic may restrain India’s crude oil procurement in the next few weeks.
Indian refineries believe that if the situation does not improve by the end of April, they need to adjust their operations.