India to buy crude from Africa, USA |
As the supply from the Middle East gets curtailed, India is turning to Africa and North America for its crude imports. The demand for gasoline has jumped resulting in Indian refiners turning to spot oil from Africa and North America as long-term suppliers in the Middle East have cut output. Spot crude imports into the world`s third-largest oil market will rise by 10 to 15 percent this year over those of 2020. The increased purchases are coming as India`s top suppliers, including Saudi Arabia and Iraq, have curtailed output as part of the OPEC+ pact. The shift underscores how other producers are benefiting from output cuts as the consumption returns in markets like India. It`s been especially good for exporters like the U.S. and Nigeria, whose crude produces more gasoline that`s in high demand since the pandemic pushes people to use private cars instead of public transport. The pullback from traditional term suppliers came when refiners maximized throughput to align with the robust domestic demand recovery. They were forced to look for spot supplies to bridge the shortfall. While the demand for gasoline and liquid petroleum gas for cooking has surged, diesel`s rebound has been slower. And, the jet fuel consumption is still half of what it was a year ago as most international routes remained shut. The Middle East oil tends to yield more diesel, while crude from the North Sea, West Africa, and U.S. shale fields usually produce more LPG and gasoline.
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