Topic
oil reserves
Commodities Time Is Ticking for Oil Reserves: Crack Spreads Hit Record as Refined Product Markets Tighten
The US-Iran peace agreement came under strain on July 7, sending crude prices higher. However, crack spreads have hit a fresh all-time high of $69.16/barrel, indicating refined product markets are tighter than crude markets due to supply constraints, not demand. EIA data shows distillate and gasoline inventories below 5-year averages.
Commodities India May Require Refiners to Triple Crude Oil Inventories After Lessons From China
Drawing lessons from China, India may ask domestic refiners to maintain significantly larger crude oil inventories as a safeguard against future supply shocks. The proposal, still at an early stage, would require refiners to hold stocks beyond the current 15-day operational buffer. If implemented, refiners could need to hold around 150 million barrels, requiring nearly Rs 60,000 crore in additional crude purchases and billions more in storage infrastructure.