Oil refiners in the world's third-largest crude importer are increasing imports to achieve annual production targets, providing prices another boost as they approach $100 a barrel.
According to several refinery personnel with knowledge of the situation, at least 18 of India's 23 refineries ran at or above 100% of nameplate capacity last month, up from just eight in August. According to them, average run rates across the facilities were 101 percent in December, up from 87 percent in August.
The state-run processors — Indian Oil Corp., Bharat Petroleum Corp., and Hindustan Petroleum Corp. — are contacting term-contract suppliers such as Saudi Arabia and Iraq for extra barrels or buying on the spot market, according to the officials, who requested anonymity because the information is confidential.
Indian Oil, the country's largest refiner, has started buying spot volumes for March and April loadings to supplement its term volumes. Hindustan Petroleum's Mumbai refinery has been expanded to 40,000 barrels per day, necessitating the purchase of more crude, according to Chairman Mukesh Kumar Surana.
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