India’s crude oil output fell 3.8% in July compared with a year earlier, as private companies and state-owned oil and gas companies (ONGC) pumped less crude at some fields. India has distanced itself from the US and Europe since the conflict broke out between Russia and Ukraine.
On August 23, local time, Indian media quoted government data from the Ministry of Petroleum and Natural Gas as saying that India’s crude oil production in July fell to 2.45 million tons from 2.54 million tons in July last year.
Crude oil production at oilfields operated by Indian Oil and Gas Corp fell 1.7% in July due to a drop in output from offshore fields in western India. The data showed that oil production from private fields fell 12.34% year-on-year in July.
So far in the fiscal year, which starts in April, India’s oil production is only marginally lower than a year earlier, according to government data.
Refining capacity in July and April-July was very strong. Last month, Indian refineries were at more than 100% capacity utilization compared to 91.58% in July 2021. From April to July this year, the refinery’s utilization rate reached 103.87%, up from 92.01% in the same period last year. Global refining margins rose sharply in the second quarter of the year as supplies tightened and fuel demand rebounded.
In fact, since late February, India has purchased 13 million barrels of Russian crude oil, and over the first quarter, India’s oil imports from Russia have almost caught up with the 16 million barrels imported last year. India imports a lot of cheap Russian crude oil, not only to meet domestic production needs, but also to gain a place in the international energy market.