OIL PRODUCTION
Brent crude oil holds above $87 a barrel
Brent crude futures fell 29 cents (0.3%) to $87.05 a barrel, and U.S. West Texas Intermediate (WTI) crude futures dropped 40 cents (0.5%) to $83.48 amid thin trading due to the U.S. Independence Day holiday. In the previous session, Brent rose 1.3% to $87.34, its highest close since April 30, while WTI settled at an 11-week high of $83.88.
India raises windfall tax on petroleum crude
The Indian government has increased the windfall tax on petroleum crude to Rs 6,000 per metric ton from Rs 3,250, effective July 2, as stated in a notification issued on Monday. This tax is reviewed every two weeks. In July 2022, India began taxing crude oil production and the export of gasoline, diesel, and aviation fuel.
Oil inches higher on summer demand outlook
Oil prices rose on supply deficit forecasts and OPEC+ cuts amid global economic challenges. Traders are cautious about rising non-OPEC+ output. Monitoring includes China's oil demand, the Atlantic hurricane season, and the impact of Hurricane Beryl.
India and China top buyers of Russian fuel oil in May, LSEG data shows
In May, Russian seaborne fuel oil and VGO exports peaked at 4 million metric tons, with India and China as top destinations. The surge followed the European Union's embargo on Russian oil products, redirecting supplies to Asia. Notably, ship-to-ship loadings near Greece and Malta facilitated the transfer of cargoes destined for Asia.
On the way: Production of Bitumen using biomass
India plans to produce bio-bitumen from biomass to reduce imports and tackle stubble burning issues in road construction.
Ethanol blending in petrol now stands at over 15%
Ethanol blending in petrol exceeded 15% in May, driven by increased purchases from biofuel makers. Oil companies achieved an average blending ratio of 15.4%, surpassing April's 12.7%. State-run oil marketing companies blended about 670 million litres of ethanol in petrol, as per oil ministry data.
India cuts windfall tax on petroleum crude
India reduced the windfall tax on petroleum crude to 3,250 Indian rupees per metric ton from 5,200 rupees on June 15. The tax for diesel and aviation turbine fuel remained at zero. The tax is revised every fortnight and the recent adjustment was made on June 1.
Reliance Industries wants petroleum product pipeline tariff linked to rail freight
Reliance Industries has opposed annual escalation in petroleum products pipeline tariff, preferring it to be linked to railway freight rates instead. Stakeholder meeting hosted by PNGRB saw discussions with major players like Indian Oil, Hindustan Petroleum, GAIL, and Reliance BP Mobility Ltd. Draft regulations aim to balance pipeline entities' interests and consumer protection, with differing opinions on tariff escalation rates.
New govt not in favour to sell stake in OMCs, says Oil Minister Puri
India's oil minister, Hardeep Singh Puri, has announced plans to bring petrol, diesel, and natural gas under the Goods and Services Tax (GST) as part of the new cabinet. Puri emphasized that the government is not in favor of stake sales in state-run oil firms, following the scrapping of the Bharat Petroleum Corporation Ltd (BPCL) divestment process in 2022. The Indian firms are also in talks for a term oil deal with Russia.
OPEC+ extends major oil production cuts until 2025 to stabilise market
OPEC+ has announced an extension of its substantial oil production cuts into 2025, aiming to stabilise the market amid sluggish demand growth, elevated interest rates, and increasing U.S. oil production. The group will maintain its current reduction of 5.86 million barrels per day (bpd), with specific cuts being extended and gradually phased out.
OPEC+ says goodbye to its $100-a-barrel oil quest
The OPEC+ cartel appears to be shifting away from its pursuit of $100-a-barrel oil, announcing a deal to gradually increase production through 2025. This move could lower oil prices and ease global inflation, impacting market dynamics and Saudi Arabia's financial outlook as it seeks to balance grandiose spending plans with declining oil revenues.
OPEC+ extends oil cuts to third quarter, discusses 2025, sources say
OPEC+ agrees to extend deep oil output cuts into 2024 and considers further extension into 2025 to stabilize the market amidst weak global demand growth and high U.S. production, with oil prices near $80 per barrel.
Government slashes domestic natural gas prices amid major pricing overhaul
The Ministry of Oil lowered domestic natural gas price to USD 8.44 per mmBtu for June 2024, following a new pricing mechanism. This adjustment aims to stabilize the market and meet energy targets, benefiting consumers and producers alike.
Government offers two discovered oil and gas fields, one coal bed methane block in special bidding round
DSF was launched in 2016 and since then three rounds have been held. In the first round, 67 discovered oil and gas fields that were clubbed into 46 contract areas were awarded. These fields had an inplace resource potential of 45 million tonnes of oil and oil equivalent gas.
ONGC's high investments to delay deleveraging: S&P
S&P Global Ratings stated that increased investments by Oil and Natural Gas Corp (ONGC) will slow its deleveraging over the next 12-24 months, affecting its 'bbb+' standalone credit profile. Despite a 2-3% drop in domestic production and lower realizations in FY2024, ONGC's EBITDA rose to Rs 1.1 lakh crore due to strong performance from subsidiaries MRPL and HPCL. S&P forecasts EBITDA to remain around Rs 1 lakh crore for FY2025 and FY2026, supported by increased production from the Krishna Godavari basin and international assets.
Oil India signs agreement with NRL for transportation of additional petroleum productsthrough NSPL
Oil India Limited (OIL) and Numaligarh Refinery Limited (NRL) signed a new long-term Definitive Agreement for transporting additional petroleum products through OIL’s Numaligarh-Siliguri Product Pipeline (NSPL). Effective for 25 years from the commencement of augmented pipeline operations, the agreement aims to enhance capacity from 1.72 MMTPA to 5.50 MMTPA. Since its establishment in 2008-09, the NSPL has been vital for evacuating products from NRL’s Refinery to Siliguri Marketing Terminal.
Oil firms blamed for ethanol stock pile-up
India's ethanol production capacity was about 13.80 billion litres per year in November 2023, of which 8.75 billion litres were molasses-based and about 5.05 billion litres grain-based, according to government data. The production capacity was about 4.20 billion litres in 2014.
Govt extends oil exploration licensing bid deadline to July 15
The Centre extended the deadline for submitting bids in the latest auctions of oil and gas exploration licences managed by the Directorate General of Hydrocarbons (DGH). Multiple deadline extensions in recent bidding rounds aim to attract more investors. In the first round, Vedanta was the top winner of licences.
Dorf Ketal Chemicals India acquires Impact Fluid Solutions to expand its suite of solutions for oil and gas production
Dorf Ketal Chemicals India acquires Impact Fluid Solutions to enhance HSE performance and sustainable global growth, with support from advisors like EY India and Piper Sandler.
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