InvestorQ : Is it a good signal that oil imports are falling in the Indian context?
Arti Chavan made post

Is it a good signal that oil imports are falling in the Indian context?

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Rutuja Nigam answered.
6 months ago
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October Crude oil imports fell 22% to 15.15 MT on a yoy basis. That is roughly 3.58 million bpd or barrels per day. This was disclosed by the Ministry of Petroleum. The existing demand is getting met substantially through inventories and that was one reason why the imports had been falling.

But it is also an issue of weak demand that has not picked up post COVID. However, there is a downside to this fall in volumes as the volume of refined oil products exported also dropped 35.7% to 3.84 MT in the October period.

In the last few months since COVID struck, the demand for crude has been constricted by weak purchasing power and limited transport needs. If one looks at the core sector and PMI numbers; which are the high frequency indicators in India, they are hinting at pick-up in oil demand in the coming weeks. So things may change in the coming months.

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