Latest news with #Kpler
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Business Standard
3 hours ago
- Business
- Business Standard
India's Russia oil imports slump, US crude purchases rise in July
Two months before American President Donald Trump unleashed his tariff and penalty war on India, Indian state-run oil refiners had started reducing purchases from Russia, sending the July import of Russian crude oil 22-27 per cent below that in June, according to refining sources and the ship-tracking data. Import from Russia in July was around 1.5 million barrels per day (bpd), the lowest this year after February, compared to 1.95-2.1 million bpd in June, according to the data from maritime intelligence agencies Vortexa and Kpler, reviewed by Business Standard. On the other hand, India's crude oil import in July, at 4.68 million bpd, declined by just less than 1 per cent from June. This shows sellers in West Asia, Africa, and the United States (US) have increased their share in the Indian market in July at the expense of Russia. Trump on Wednesday announced a 25 per cent tariff on Indian goods and unspecified penalties for purchasing Russian oil and arms. 'If these new tariffs are enforced, combined with existing sector-specific tariffs on products like aluminium, steel and automobiles, the total effective US tariffs on Indian imports would rise to around 26.6 percentage points excluding penalties,' Goldman Sachs on Thursday said in a report. Crude-oil import from the US increased 23 per cent in July from June, accounting for 8 per cent of the total. This was much higher than the 3 per cent share in February, reflecting New Delhi's attempts to accommodate the Trump administration's agenda of higher US energy export. But there may be trouble ahead as sanctions mount on India, both from the European Union (EU) and the US, said Vandana Hari, a Singapore-based energy expert. A fifth of tankers that delivered Russian oil to India in June were sanctioned this month by the EU, said Hari, founder of Vanda Insights, citing independent research data. Two officials in state-run firms said Trump's tweet and lack of a definitive statement from New Delhi had created uncertainty over August deliveries of Russian oil, which were contracted at the end of June and were now on high seas, before EU sanctions were announced. It is unclear if penalties will apply to existing shipments or new orders, the officials said. In addition, it is unclear how well Rosneft-run Nayara Energy, which accounts for nearly 15 per cent of India's Russian crude oil import, can manage operations after being sanctioned by the EU. Nayara has not commented on specific plans. Trump cited India's high tariffs, non-monetary trade barriers, and the purchase of Russia's military equipment and energy as the reasons for imposing the 25 per cent tariffs plus penalty, Nomura Securities said in a note. This highlights his deeper geopolitical concern over India's Russia dependence, rather than just resolving tariff and non-tariff barriers, the brokerage added. It maintained its FY26 growth forecast at 6.2 per cent in gross domestic product but flagged a downside risk of 20 basis points in case the tariffs get entrenched at these levels. Russian share falls Russian oil accounted for around 33 per cent of India's crude oil import in July, declining from a record of 45 per cent in June and 43 per cent a year earlier, the Kpler data showed. Iraqi supplies of Basrah grades, India's second-highest source, rose 10 per cent during the period. Iraq accounted for a fifth of India's July supplies, followed by Saudi Arabia at 15 per cent. Indian Oil contributed largely to the decline in Russian oil purchases in July, with purchases by India's biggest refiner crashing by more than half to around 200,000 bpd in the month, the Kpler data shows. Import by Reliance Industries, the biggest buyer of Russian oil, declined 17 per cent in the month to 618,000 bpd. State-run refiners in July made the biggest cuts, with Hindustan Petroleum importing around 20,000 bpd, around a third of the June volumes. Bharat Petroleum slashed purchases by 27 per cent during the period, the Kpler data showed. June this year was an outlier for Russian oil import, said a Singapore-based oil analyst with a western commodity broker. Russian shipment averaged around 1.6 million bpd this year, she said. Purchases in June were the highest in two years, with summer months typically showing elevated purchases of Russian oil, the ship-tracking data showed.
CNA
9 hours ago
- Business
- CNA
Azeri BTC crude arriving at Ceyhan is within normal specification, BP says
LONDON :Azeri BTC crude oil arriving at the BTC Ceyhan terminal in Turkey is returning to normal specification, a BP spokesperson said on Thursday. Organic chloride contamination in Azeri BTC crude cargoes was discovered last week, sending price differentials to a four-year low and causing several days' delay in loadings, in part due to the extra testing to which each cargo was subject. Oil loadings from Ceyhan are continuing from tanks containing on-specification oil while BP is working with Azerbaijan's Socar to manage the off-specification oil in other tanks, the BP spokesperson said. A total of 425,000 barrels per day (bpd) of Azeri BTC loaded from Ceyhan over 1-30 July, according to data from analytics firm Kpler, compared to the 561,000 bpd scheduled on the July loading programme. It remains unclear when the contamination started, and how many cargoes have been affected.
Reuters
9 hours ago
- Business
- Reuters
Azeri BTC crude arriving at Ceyhan is within normal specification, BP says
LONDON, July 31 (Reuters) - Azeri BTC crude oil arriving at the BTC Ceyhan terminal in Turkey is returning to normal specification, a BP spokesperson said on Thursday. Organic chloride contamination in Azeri BTC crude cargoes was discovered last week, sending price differentials to a four-year low and causing several days' delay in loadings, in part due to the extra testing to which each cargo was subject. Oil loadings from Ceyhan are continuing from tanks containing on-specification oil while BP is working with Azerbaijan's Socar to manage the off-specification oil in other tanks, the BP spokesperson said. A total of 425,000 barrels per day (bpd) of Azeri BTC loaded from Ceyhan over 1-30 July, according to data from analytics firm Kpler, compared to the 561,000 bpd scheduled on the July loading programme. It remains unclear when the contamination started, and how many cargoes have been affected.
Business Recorder
16 hours ago
- Business
- Business Recorder
China iron ore imports hold up as storm clouds gather: Russell
LAUNCESTON: Iron ore remains a standout performer among major commodities this year as it holds above $100 a metric ton despite mounting signs that the steel sector in top importer China is softening. The most-traded iron ore contract on the Singapore Exchange ended at $101.71 a ton on Wednesday, down from $102.74 at the prior close. The rolling front-month contract has traded in a relatively narrow band this year, with a high of $107.81 a ton on February 12 and a low of $93.35 on July 1. That stability in pricing is largely a reflection that imports by China, which buys about 75% of global seaborne volumes, have held up. China's imports were 592.2 million tons in the first half of the year, down 3% from the same period in 2024, according to customs data. However, June arrivals were 105.95 million tons, the highest since December last year. China's July imports also look set to be above 100 million tons, with commodity analysts Kpler estimating 101.32 million tons. The relative resilience of China's iron ore imports appears to be the main reason that prices have been able to hold around the $100 level so far this year. The question for the market is whether they can continue to hold that level given the signals being received from the rest of the iron ore and steel sectors. China, which produces just over half of the world's steel, saw output drop 9.2% in June from the same month in 2024 to 83.18 million tons. This was also the lowest level of monthly production so far in 2025, and it led to output for the first half of 2025 declining 3% to 514.83 million tons. The outlook for the second half of the year isn't too rosy either, especially if annual steel production is to stay around the informal target of 1 billion tons, which has prevailed for the past five years. At best, China's steel output is unlikely to increase in the second half of this year from the first, and it may decline, especially if exports are lower as importing countries impose more duties on Chinese steel products. Exports slipping Exports of steel products dropped 8.5% to 9.68 million tons in June from May, although a strong start to the year meant shipments rose 9.2% in the first half to 58.15 million tons. But the likelihood is that China's steel exports are likely to ease in the second half, putting further pressure on the sector. Given China's economy is still battling to stabilise the property sector and its manufacturers face uncertainty over U.S. tariffs and intense domestic competition, it's increasingly difficult to construct a bullish case for iron ore. There is still some scope for iron ore inventories to increase, as port stockpiles monitored by consultants SteelHome ended at 131.05 million tons in the week to July 25, down from 151.8 million in the same week last year. It's also worth looking at iron ore demand outside of China, but this is also looking soft, with global seaborne imports dropping to 136.56 million tons in July, the lowest since April, according to Kpler data. Europe's seaborne iron ore imports are expected to fall to 6.53 million tons in July for a third straight monthly decline, according to Kpler. Japan, the world's second-largest iron ore importer, is a rare bright spot with July arrivals expected at a three-month high of 7.73 million tons. However, South Korea, the third-largest importer, is forecast to import 4.71 million tons in July, which is the weakest since February 2017, according to Kpler data. Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI can help you keep up. Follow ROI on LinkedIn and X.
Reuters
18 hours ago
- Business
- Reuters
China iron ore imports hold up as storm clouds gather
LAUNCESTON, Australia, July 31 (Reuters) - Iron ore remains a standout performer among major commodities this year as it holds above $100 a metric ton despite mounting signs that the steel sector in top importer China is softening. The most-traded iron ore contract on the Singapore Exchange ended at $101.71 a ton on Wednesday, down from $102.74 at the prior close. The rolling front-month contract has traded in a relatively narrow band this year, with a high of $107.81 a ton on February 12 and a low of $93.35 on July 1. That stability in pricing is largely a reflection that imports by China, which buys about 75% of global seaborne volumes, have held up. China's imports were 592.2 million tons in the first half of the year, down 3% from the same period in 2024, according to customs data. However, June arrivals were 105.95 million tons, the highest since December last year. China's July imports also look set to be above 100 million tons, with commodity analysts Kpler estimating 101.32 million tons. The relative resilience of China's iron ore imports appears to be the main reason that prices have been able to hold around the $100 level so far this year. The question for the market is whether they can continue to hold that level given the signals being received from the rest of the iron ore and steel sectors. China, which produces just over half of the world's steel, saw output drop 9.2% in June from the same month in 2024 to 83.18 million tons. This was also the lowest level of monthly production so far in 2025, and it led to output for the first half of 2025 declining 3% to 514.83 million tons. The outlook for the second half of the year isn't too rosy either, especially if annual steel production is to stay around the informal target of 1 billion tons, which has prevailed for the past five years. At best, China's steel output is unlikely to increase in the second half of this year from the first, and it may decline, especially if exports are lower as importing countries impose more duties on Chinese steel products. Exports of steel products dropped 8.5% to 9.68 million tons in June from May, although a strong start to the year meant shipments rose 9.2% in the first half to 58.15 million tons. But the likelihood is that China's steel exports are likely to ease in the second half, putting further pressure on the sector. Given China's economy is still battling to stabilise the property sector and its manufacturers face uncertainty over U.S. tariffs and intense domestic competition, it's increasingly difficult to construct a bullish case for iron ore. There is still some scope for iron ore inventories to increase, as port stockpiles monitored by consultants SteelHome ended at 131.05 million tons in the week to July 25, down from 151.8 million in the same week last year. It's also worth looking at iron ore demand outside of China, but this is also looking soft, with global seaborne imports dropping to 136.56 million tons in July, the lowest since April, according to Kpler data. Europe's seaborne iron ore imports are expected to fall to 6.53 million tons in July for a third straight monthly decline, according to Kpler. Japan, the world's second-largest iron ore importer, is a rare bright spot with July arrivals expected at a three-month high of 7.73 million tons. However, South Korea, the third-largest importer, is forecast to import 4.71 million tons in July, which is the weakest since February 2017, according to Kpler data. Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, opens new tab and X, opens new tab. The views expressed here are those of the author, a columnist for Reuters.
