India could provide demand support in the tanker market
The tanker market is looking for additional support from markets like India. In its latest weekly report, shipbroker Banchero Costa said: “2020 was overall a very negative year for crude oil trade. Total loadings in the 12 months of 2020 were down -6.2 percent yoy to 2032 million tonnes, according to vessels tracking data from Refinitiv. 2021 so far is faring even worse.
“In the first eight months of 2021, global seaborne crude oil trade declined by -6.5 percent yoy to 1294 m tonnes. What’s worst is that so far there is no sign of things turning a corner. Even in August 2021, global crude loading was at 164.2 m tonnes, which was essentially flat (+0.4 percent yoy) on the already depressed levels of August 2020, and down -8.1 percent compared to (pre-Covid) August 2019.”
According to Banchero Costa: “India is the third largest seaborne importer of crude oil in the world, after mainland China and the European Union. In 2020, India accounted for 9.3 percent of global seaborne crude oil shipments, compared to China’s 22 percent and the EU’s 19 percent. It was only marginally ahead of ASEAN, with also 9 percent. Imports into India were growing rapidly over the years, driven both by domestic demand but also due to the establishment of a large export-oriented refining industry.”
However, imports declined sharply during 2020 due to the impact of COVID-19 and associated lockdowns. India’s seaborne crude oil imports in the 12 months of 2020 declined by -6.8 percent yoy to 198.2 m tonnes, from 212.6 m tonnes in 2019.
Overall, in the first eight months of 2021, India imported 132.4 m tonnes of crude oil, which was up +2.1 percent yoy from the same period in 2020, although still down -6.1 percent from the same period in 2019. In terms of sources of imports into India, things changed a bit. The vast majority of imports were sourced from the Middle East, accounting for 61 percent of India’s total imports this year.
For more information visit www.bancosta.com
4th October 2021