Petroleum exports drop, imports rise as global supply and demand imbalances persist.
The export of refined petroleum products in India continued to decline in August, widening to 5 million tonnes (mt), as per data from the Petroleum Planning and Analysis Cell. Between April and August 2024, exports fell by nearly 3 percent to 18.1 mt, driven by sluggish diesel exports.
Meanwhile, crude oil imports surged by 6.4 percent in August, reaching 19.9 mt, up from 18.7 mt a year earlier, indicating stable supply conditions. Despite the increase in imports, domestic petroleum consumption dropped by 2.65 percent to 18.3 mt in the same month, with diesel sales down by 2.5 percent to 6.5 mt.
Industry experts attribute the falling exports to reduced demand in European markets. Simultaneously, global oil supplies increased, despite ongoing OPEC production cuts, with a rise in output from countries like Guyana and Brazil. Benchmark Brent crude prices dropped to a 33-month low, reflecting concerns over oversupply and weakened demand.
