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Time of India
16 hours ago
- Business
- Time of India
OPEC+ giants ramp up additional oil to India; market share nears 78%; supplied 375,000 bpd to India in May
NEW DELHI: India's top four oil suppliers and key members of the OPEC+ alliance, Saudi Arabia, Russia, Iraq, and the UAE have significantly ramped up production and directed a major portion of the additional output to India. Tired of too many ads? go ad free now Their collective market share has reached approximately 78% in India, the world's third-largest oil consumer. These nations have supplied an additional 375,000 barrels per day (bpd) to India in May compared to April, according to energy cargo tracker Vortexa. The collective increase surpassed their committed additional production of 359,000 bpd under Opec+'s output expansion plan of 409,000 bpd. Russia maintained its leading position among India's crude suppliers due to ongoing barrel discounts. In the OPEC+ May supply increase, Saudi Arabia agreed to raise output by 166,000 bpd, Russia by 79,000 bpd, Iraq by 37,000 bpd and the UAE by 77,000 bpd. Their exports to India increased by 135,673 bpd, 114,016 bpd, 66,642 bpd and 58,365 bpd respectively, resulting in market shares of 13.1%, 35.4%, 21.4% and 7.6% in May. Their combined share increased by 8.1 percentage points to 77.5%. African suppliers' share decreased to 4.9% from 11.8%, whilst US crude exports to India reduced to 5.7% from 7%. Saudi Arabia, the largest contributor to the group's supply increase, delivered the highest additional volume to India in May, increasing its market share to 13.1%, a 3% point rise from April. This increase resulted from price reductions offered to Asian purchasers, with Saudi Aramco reducing the May OSP for Arab Light by $2.30 per barrel. The premium has decreased to $1.20 above the Oman/Dubai benchmark for Asian buyers. Tired of too many ads? go ad free now For July loadings, the premium remains at $1.20, after a brief increase to $1.40 for June. "The recent Saudi Aramco's official selling price (OSP) cuts for May loadings, close to four-year low, along with the widening Brent-Dubai Exchange of Futures for Swaps (EFS) made Middle Eastern crude grades more competitively priced than other Brent-linked crudes," Xavier Tang, market analyst at Vortexa said, according to the Economic Times. "Production increases from Saudi Arabia and other OPEC members play an essential role in the Dubai crude price structure," he added. Eight OPEC+ nations have committed to increase output by an additional 411,000 bpd in June and July. The increased supply has affected prices, which have remained between $60-65 per barrel for over two months, significantly below the 2024 average of $80. Saudi Arabia's competitive pricing approach reflects the global competition for India's expanding crude market. "Saudi is offering attractive prices to gain share in India," an Indian refinery executive told the outlet.
Time of India
3 days ago
- Business
- Time of India
Opec+ giants pump out additional oil to India
Saudi Arabia, Russia, Iraq and the UAE—the heavyweights of the Opec+ producers' alliance and India's top four suppliers—are ramping up oil production and directing most of their additional output to India, boosting their combined market share to nearly 78 per cent in the world's third-largest oil consumer. In May, these four countries supplied 375,000 barrels per day (bpd) more to India than in April, according to energy cargo tracker Vortexa. That's even higher than the 359,000 bpd they had collectively committed to additionally produce under Opec+'s plan to raise output by 409,000 bpd. Saudi Arabia, the biggest contributor to the group's supply increase, delivered the largest incremental volume to India in May, expanding its market share by 3 percentage points over April to 13.1 per cent . The gain was driven by price cuts offered to Asian buyers. Saudi Aramco had cut the May OSP for Arab Light—its flagship grade—by $2.30 per barrel. Competing for Larger Share This has brought down the premium to $1.20 above the Oman/Dubai benchmark for Asian buyers. The premium remains at $1.20 for July loadings, after briefly rising to $1.40 for June. 'The recent Saudi Aramco's official selling price (OSP) cuts for May loadings—close to four-year lows—along with the widening Brent-Dubai Exchange of Futures for Swaps (EFS) made Middle Eastern crude grades more competitively priced than other Brent-linked crudes,' said Xavier Tang, market analyst at Vortexa. 'Production increases from Saudi Arabia and other OPEC members play an essential role in the Dubai crude price structure.' Saudi Arabia's aggressive pricing strategy comes as global suppliers compete for a larger share of India's growing crude market. 'Saudi is offering attractive prices to gain share in India,' an Indian refinery executive told ET. China, despite having a much larger oil market, has seen demand slow as buyers increasingly shift to electric vehicles, he added. Russia retained the top position among India's crude suppliers, thanks to continued discounts on its barrels. As part of the OPEC+ May supply boost, Saudi Arabia had agreed to increase output by 166,000 bpd, Russia by 79,000 bpd, Iraq by 37,000 bpd and the UAE by 77,000 bpd. Their respective exports to India rose by 135,673 bpd, 114,016 bpd, 66,642 bpd and 58,365 bpd. This translated into market shares of 13.1 per cent , 35.4 per cent , 21.4 per cent and 7.6 per cent in May. Collectively, their share rose 8.1 percentage points to 77.5 per cent . These gains came at the expense of African suppliers, whose share in India's crude imports fell to 4.9 per cent in May from 11.8 per cent in April. US crude exports to India also declined, reducing its share to 5.7 per cent from 7 per cent . Eight OPEC+ countries have agreed to raise output by another 411,000 bpd in June and again in July. The rising supply has put pressure on prices, which have hovered between $60-65 per barrel for more than two months, well below the 2024 average of $80.
Time of India
3 days ago
- Business
- Time of India
Opec+ giants pump out additional oil to India
Saudi Arabia, Russia, Iraq and the UAE—the heavyweights of the Opec+ producers' alliance and India's top four suppliers—are ramping up oil production and directing most of their additional output to India, boosting their combined market share to nearly 78% in the world's third-largest oil consumer. In May, these four countries supplied 375,000 barrels per day (bpd) more to India than in April, according to energy cargo tracker Vortexa. That's even higher than the 359,000 bpd they had collectively committed to additionally produce under Opec+'s plan to raise output by 409,000 bpd. Saudi Arabia, the biggest contributor to the group's supply increase, delivered the largest incremental volume to India in May, expanding its market share by 3 percentage points over April to 13.1%. The gain was driven by price cuts offered to Asian buyers. Saudi Aramco had cut the May OSP for Arab Light—its flagship grade—by $2.30 per barrel. Competing for Larger Share This has brought down the premium to $1.20 above the Oman/Dubai benchmark for Asian buyers. The premium remains at $1.20 for July loadings, after briefly rising to $1.40 for June. 'The recent Saudi Aramco's official selling price (OSP) cuts for May loadings—close to four-year lows—along with the widening Brent-Dubai Exchange of Futures for Swaps (EFS) made Middle Eastern crude grades more competitively priced than other Brent-linked crudes,' said Xavier Tang, market analyst at Vortexa. 'Production increases from Saudi Arabia and other OPEC members play an essential role in the Dubai crude price structure.' Saudi Arabia's aggressive pricing strategy comes as global suppliers compete for a larger share of India's growing crude market. 'Saudi is offering attractive prices to gain share in India,' an Indian refinery executive told ET. China, despite having a much larger oil market, has seen demand slow as buyers increasingly shift to electric vehicles, he added. Russia retained the top position among India's crude suppliers, thanks to continued discounts on its barrels. As part of the OPEC+ May supply boost, Saudi Arabia had agreed to increase output by 166,000 bpd, Russia by 79,000 bpd, Iraq by 37,000 bpd and the UAE by 77,000 bpd. Their respective exports to India rose by 135,673 bpd, 114,016 bpd, 66,642 bpd and 58,365 bpd. This translated into market shares of 13.1%, 35.4%, 21.4% and 7.6% in May. Collectively, their share rose 8.1 percentage points to 77.5%. These gains came at the expense of African suppliers, whose share in India's crude imports fell to 4.9% in May from 11.8% in April. US crude exports to India also declined, reducing its share to 5.7% from 7%. Eight OPEC+ countries have agreed to raise output by another 411,000 bpd in June and again in July. The rising supply has put pressure on prices, which have hovered between $60-65 per barrel for more than two months, well below the 2024 average of $80.
Time of India
3 days ago
- Business
- Time of India
Opec+ giants pump out additional oil to India
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel NEW DELHI: Saudi Arabia , Russia, Iraq and the UAE—the heavyweights of the Opec+ producers' alliance and India's top four suppliers—are ramping up oil production and directing most of their additional output to India, boosting their combined market share to nearly 78% in the world's third-largest oil consumer. In May, these four countries supplied 375,000 barrels per day (bpd) more to India than in April, according to energy cargo tracker even higher than the 359,000 bpd they had collectively committed to additionally produce under Opec+'s plan to raise output by 409,000 bpd. Saudi Arabia, the biggest contributor to the group's supply increase, delivered the largest incremental volume to India in May, expanding its market share by 3 percentage points over April to 13.1%. The gain was driven by price cuts offered to Asian buyers. Saudi Aramco had cut the May OSP for Arab Light—its flagship grade—by $2.30 per has brought down the premium to $1.20 above the Oman/Dubai benchmark for Asian buyers. The premium remains at $1.20 for July loadings, after briefly rising to $1.40 for June.'The recent Saudi Aramco's official selling price (OSP) cuts for May loadings—close to four-year lows—along with the widening Brent-Dubai Exchange of Futures for Swaps (EFS) made Middle Eastern crude grades more competitively priced than other Brent-linked crudes,' said Xavier Tang, market analyst at Vortexa. 'Production increases from Saudi Arabia and other OPEC members play an essential role in the Dubai crude price structure.'Saudi Arabia's aggressive pricing strategy comes as global suppliers compete for a larger share of India's growing crude market. 'Saudi is offering attractive prices to gain share in India,' an Indian refinery executive told ET. China, despite having a much larger oil market, has seen demand slow as buyers increasingly shift to electric vehicles, he retained the top position among India's crude suppliers, thanks to continued discounts on its part of the OPEC+ May supply boost, Saudi Arabia had agreed to increase output by 166,000 bpd, Russia by 79,000 bpd, Iraq by 37,000 bpd and the UAE by 77,000 bpd. Their respective exports to India rose by 135,673 bpd, 114,016 bpd, 66,642 bpd and 58,365 bpd. This translated into market shares of 13.1%, 35.4%, 21.4% and 7.6% in May. Collectively, their share rose 8.1 percentage points to 77.5%. These gains came at the expense of African suppliers, whose share in India's crude imports fell to 4.9% in May from 11.8% in April. US crude exports to India also declined, reducing its share to 5.7% from 7%.Eight OPEC+ countries have agreed to raise output by another 411,000 bpd in June and again in July. The rising supply has put pressure on prices, which have hovered between $60-65 per barrel for more than two months, well below the 2024 average of $80.
Zawya
06-03-2025
- Business
- Zawya
Mexican fuel oil heads to Asia, Europe in March on Trump tariffs
Mexican fuel oil cargoes are heading to Asia and Europe this month as higher prices draw supply, while traders eye more diversions after U.S. President Donald Trump imposed tariffs on imports this week, trade sources and analysts said. State energy major Pemex typically sells most of its heavy crude and high-sulphur fuel oil (HSFO) for processing at U.S. Gulf Coast refineries but a 25% tariff on Mexican goods implemented by Washington on Tuesday is diverting cargoes. Mexico's HSFO deliveries to Asia and Europe are set to climb in March, the first increase in at least five months, data from trade sources and shipping analytics firms Kpler and Vortexa show. Two Mexican fuel oil cargoes totalling 145,000 metric tons, or 920,750 barrels, are expected to land in Singapore in late March, Kpler's data showed as of this week, while Europe is forecast to receive at least four shipments this month totalling 188,000 tons. Strong HSFO prices in Asia have attracted Mexican supply, the trade sources said. Spot prices for benchmark Singapore 380-cst HSFO soared in recent sessions, while refiners' margins for producing the fuel reached rare premiums last month. "Europe is a more natural outlet for Mexican fuel oil. But with current prompt strength in Singapore, maybe more (oil) can flow here," an Asia-based fuel oil trader said. HSFO can be blended as marine fuel at bunker hubs such as Singapore and Rotterdam. Neither Pemex nor its trading arm immediately responded to a request for comment. "We may see diversions of fuel oil cargoes currently in transit to the U.S. East Coast, potentially increasing European arrivals from Mexico this month," said Vortexa analyst Xavier Tang, adding that the tariffs will likely displace a considerable proportion of U.S. HSFO imports from Mexico. The next Mexican fuel oil cargo bound for U.S. is being shipped by the Panamax-sized tanker Constellation, which is due to discharge at Houston on Friday, Kpler data showed. However, the volume to be diverted to Asia and Europe would depend on whether Washington adjusts or suspends its tariffs and on emissions tax in Europe, traders said. If the U.S. import tariff remains at 25%, cargoes are likely to head east, another Asia-based fuel oil trader said. A Europe-based trader said that traders will also consider the EU emissions trading system (ETS) tax when calculating the arbitrage to Rotterdam. "ETS prices have been low but if prices rise it could become a bigger factor in arbitrage considerations," the trader added. Given this, a source from PMI Comercio Internacional, Pemex's trading arm, said it will be easier to sell its HSFO to Asia than to Europe. The sources declined to be named as they are not authorised to speak to media. (Reporting by Jeslyn Lerh in Singapore and Stefanie Eschenbacher in Mexico; Additional reporting by Enes Tunagur in London; Editing by Florence Tan and Christian Schmollinger)
