Sometime soon, perhaps on Tuesday or Wednesday, Degas, a very large crude carrier laden with Venezuelan oil, is expected to dock at Jamnagar to unload 2 million barrels of dirty, high sulphur crude oil, shipping data shows. With this, the cheapest crude available to India is again within reach, nearly five months after the United States reimposed restrictions on oil exports from the South American nation.
The 42-day journey, made around the horn of Africa, to evade missiles hurled by the Houthi rebels on tankers taking the shorter Suez Canal route, will end at India's west coast on September 11, according to data from Paris-based market intelligence agency Kpler. Reliance, India's second biggest refiner, operates a 1.36 million barrels per day (bpd) refinery in Jamnagar where it has the capability to process some of the dirtiest crudes.
The dark, viscous Merey aboard the Degas is one such. It is also acidic in nature, corrosive and tougher to refine into petrol or diesel. These oils are available at large discounts to the Gulf and Russian oils populating the Indian crude universe, enabling huge savings.
Venezuelan grades were, on an average, cheaper by $15-19 a barrel (bbl) this year compared to the Indian crude import basket, according to oil ministry and customs data. That translates into annual savings of $3 billion annually based on peak volumes, according to Business Standard's calculations.
This story is from the September 09, 2024 edition of Business Standard.
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This story is from the September 09, 2024 edition of Business Standard.
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