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Oil Gets Another Tailwind as Refiners Go All Out in India

  • Plants at 101% of capacity in December, up from 87% in August
  • State-run processors trying to buy more term and spot crude
Profits from making diesel have soared as demand recovers amid tight supplies
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Oil refiners in the world’s third-biggest crude importer are stepping up purchases as they strive to meet annual production goals, giving prices another tailwind as they march toward $100 a barrel.

At least 18 of India’s 23 refineries operated at more than 100% of nameplate capacity last month, up from just eight in August, according to several refinery officials with knowledge of the matter. Average run rates across the plants were 101% in December, compared with 87% in August, they said.