Indian crude processing remained near record levels

Indian refiners’ crude oil processing remained near record levels in February, provisional government data showed, catering to rising demand in the world’s third biggest oil importer and consumer.

Refinery throughput was 2% higher year-on-year at 5.46 million barrels per day (20.85 million tonnes) for February. Throughput stood at 5.39 million barrels per day (22.80 million tonnes) in January.

Crude oil processed in million barrels per day (bpd) terms, taking into account the fewer days in February, was the highest since Reuters records going back to 2009.

India’s fuel demand hit its highest level in at least 24 years in February, with industrial activity in Asia’s third biggest economy boosted by cheap Russian oil.

In February, Russia tightened its grip on India’s oil market, while sending the share of African crude oil in India’s total crude imports to its lowest level in at least 22 years.

Meanwhile, India’s Bank of Baroda stopped clearing payments for Russian oil sold above the price cap set by the West from this month, three sources with direct knowledge of the matter said, a move that could expedite transition to a rupee trade mechanism.

Natural gas output rose 1.9% to 2.65 billion cubic metres year on year, while crude oil production was down nearly 5% year on year at 2.16 million tonnes, the data showed. India cut its windfall tax on crude oil to zero.