Base Oil Report
| Country | MT | % |
|---|---|---|
| Korea | 113,884 | 60% |
| Singapore | 21,489 | 11% |
| Spain | 16,744 | 9% |
| USA | 8,986 | 5% |
| UAE | 8,699 | 5% |
| Taiwan | 8,668 | 5% |
| Bahrain | 3,121 | 2% |
| Saudi | 1,884 | 1% |
| Malaysia | 1,183 | 1% |
| Other countries | 4,978 | 3% |
Crude Oil Prices are seeing a down by 51 per cent compared with the same period a year ago March 2014. Prices of Brent crude, which matters more for India, were quoted at $ 58.35 a barrel, Western Texas crude was ruling at $48.54 a barrel. Prospects of recovery in crude oil prices look bleak since supplies in the US have increased to 80- year high of 448.8 million barrels. The US Energy Information Administration (EIA) says that a lot of the world’s oversupply is finding its way to storage in North America. Compared with the same period a year ago, inventories are up 20 per cent. The problem of oversupply will continue since the Organization of Petroleum Exporting Countries, which accounts for 40 per cent of the global production, and US shale oil producers are locked in a tussle to assert their supremacy. For OPEC, Saudi Arabia has been the prime force in not agreeing to any production cut, which could boost prices psychologically. For India, the fourth largest crude oil importer, cheaper crude oil will help lower its current account deficit since 71 per cent of the total domestic demand is met through imports. Also, crude oil accounts for 34 per cent of the country’s total imports. According to Government data, crude oil imports during January were valued at $8.25 billion, 37 per cent lower than that in January 2014. Shipments into the country during April-January in the current fiscal were 7.87 per cent lower at $124.75 billion ($135.40 billion in the same period a year ago).
| Month | Group II - N 70 Korea | SN-500 Iran Origin | Bright Stock | Base Oil HYGOLD L-2000 |
|---|---|---|---|---|
| July 2014 | 1065–1075 | 1040–1045 | 1220–1230 | 1075-1085 |
| August 2014 | 1055–1060 | 1045–1055 | 1235–1245 | 1070-1085 |
| September 2014 | 1015–1020 | 1015–1020 | 1200–1210 | 1080–1090 |
| Since July 2014 prices down by USD 50 (5%) in September 2014 | Since July 2014 prices has marked down by USD 25 (2%) in September 2014 | Since July 2014 prices has gone down by USD 20 (2%) in September 2014 | Since July 2014 prices has decreased by USD 20 (2%) in September 2014 |
The Indian base oil market remains steady with inventories at optimum levels with surplus of imported grades. Major imports are from Korea, Singapore, USA, UAE, Iran, Taiwan, France, UK, Netherlands, Japan, Italy, Belgium, etc. Indian State Oil PSU’s IOC/HPCL basic prices for SN – 70/N – 70/SN – 150/N -150 marked up marginally by Rs. 0.20 per liter, while SN - 500/N - 500 is marked down by Rs, 0.40 per liter. Bright Stock price is down by Rs. 0.30 per liter. BPCL prices are awaited. The prices are effective from March 02, 2015. Hefty Discounts are offered by refiners which are in the range of Rs. 15.00 – 17.00 per liter for buyers who commit to lift above 1500 MT. Group I Base Oil prices for neutrals SN -150/500 (Russian and Iranian origin) are offered in the domestic market at Rs. 40.80 – 40.90/40.70 – 40.95 per liter, excise duty and VAT as applicable Ex Silvassa in bulk for one tanker load. At current level availability is not a concern.
| Port | MT | % |
|---|---|---|
| Mumbai | 150,486 | 79% |
| JNPT | 18,170 | 10% |
| Ennore | 10,691 | 6% |
| Chennai | 6,249 | 3% |
| Kolkata | 2,679 | 1% |
| Other Ports | 1,362 | 1% |
The Indian domestic market Korean origin Group II plus N-60–70/150/500 prices at the current level have been marked down due to higher inventories level. As per conversation with domestic importers and traders prices reflects minimal changes for N – 60/ N- 150/ N - 500 grades and at the current level are quoted in the range of Rs. 42.00 – 42.60/42.95 – 43.95/43.50 – 43.80 per liter in bulk respectively with an additional 14 percent excise duty and VAT as applicable, no Sales tax/Vat if products are offered ExSilvassa a tax free zone. The above mentioned prices are offered by a manufacturer who also offers the grades in the domestic market, while another importer trader is offering the grades cheaper by Rs.0.25 – 0.35 per liter on basic prices. Prices may decline further by another Rs.1.50–2.00 per liter due to lack of demand and high inventories. Light Liquid Paraffin (IP) is priced at Rs. 42.30 – 42.40 per liter in bulk and Heavy Liquid paraffin (IP) is Rs. 46.40 – 46.75 per liter in bulk respectively plus taxes extra.
Approximately 3,358 MT of Transformer Oil has been exported in the month of December 2014 from JNPT, Village Ponneri and Chennai port. It has been exported to Bangladesh, Afghanistan, Brazil, Malaysia, Djibouti, Myanmar, Iran, Newzealand, Oman, Paraguay, Indonesia, South Africa, Srilanka, Saudi, Philippines, Thailand, Vietnam, and UAE.
Light & Heavy White Oil Exported to Countries
- Australia
- Argentina
- Bangladesh
- Brazil
- Bulgaria
- Cambodia
- Chile
- Colombia
- Djibouti
- Ecuador
- Egypt
- Germany
- Guatemala
- Greece
- Ghana
- Hong Kong
- Indonesia
- Ivory Coast
- Iran
- Israel
- Jordan
- Kenya
- Malaysia
- Nepal
- New Zealand
- Nigeria
- Pakistan
- Peru
- Philippines
- Poland
- South Africa
- Senegal
- Spain
- Srilanka
- Taiwan
- Tanzania
- Thailand
- Turkey
- USA
- UK
- Ukraine
- Vietnam
- Yemen
- Zaire
