India hasn’t put the pandemic behind it, but its oil refineries have.
Three state-run processors including Indian Oil Corp., the nation’s top refiner, are currently operating at close to 100% capacity or higher, according to people with knowledge of the matter. Behind the recovery is strong demand for gasoline and liquefied petroleum gas as many opt to drive their own cars over taking public transport and cook at home to avoid restaurants.
The situation in the world’s No. 2 oil market follows a full rebound in top consumer China, and underscores how Asian markets are leading crude’s rally even as vaccines offer hope for a wider revival. The uneven nature of India’s recovery shares similarities with its neighbor’s revival — gasoline use in both nations spiked when people returned to work — while demand for diesel in the still-flagging South Asian economy lagged that of China.
