India’s oil imports in May sink to lowest in over 8 years

India’s oil imports in May hit the lowest since Oct 2011 as refiners with brimming storage cut purchases after a continuous decline in fuel demand, preliminary data obtained from industry sources showed.

In May, India imported 3.18 million barrels per day (bpd) of oil, a decline of about 31% from April and about 26% from a year ago, the data showed.

Hit by an unexpected fall in demand due to lockdown measures to contain the novel coronavirus, Indian refiners in April filled tanks with cheaper oil, sold extra cargoes to the federal government for strategic reserves and declared force majeure on crude imports.

The refiners, which normally book cargoes one-to-two months in advance, also deferred some term cargoes scheduled for lifting in April.