India’s crude oil production fell in August

India’s crude output fell 3.4 percent on the year in August to 2.4 million metric tons, equivalent to about 17.6 million barrels. Fuel production also fell, more modestly, the Economic Times reported.

Most of August’s crude output came from the state-owned Oil and Natural Gas Corporation, which accounted for 1.6 million tonnes. Crude processing in India fell 1.9% year-on-year in August to 21.5 million tonnes.

As domestic production fell, India’s crude oil imports rose 6.4% in August, leading to a 3.3% rise in oil imports in April-August as the country’s economy continues to expand .

The price of August oil and gas imports also rose over the year, from $9 billion in 2023 to $11.4 billion this year. The increase, according to the Indian Ministry of Petroleum, was driven by higher imports of liquefied petroleum gases and lubricants.

The world’s third-largest crude importer, India, relies on imports to cover more than 85 percent of its oil consumption, which is growing in step with economic and refinery expansion plans.

Over the past two years, India has become a key buyer of Russian oil, which is selling at a discount due to sanctions and embargoes on Russian crude exports to Western countries. Given India’s sensitivity to oil prices, the development was expected.

The country is set to become an engine for 35% of future energy demand, according to Petroleum Minister Hardeep Puri. Speaking at the Gastech conference in Houston this month, Puri said: “If you say global demand is growing by one percent, ours is growing by three times. Over the next two decades, 35% of global demand growth will come from India.”

At the same time, the official said that India also wants to succeed in the energy transition. “We will manage and succeed … in the green transition,” Puri said. “That’s the part I’m most pleased with.”

By Irina Slav for Oilprice.com

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