Asia’s No. 2 fuel guzzler eyes more exports as pandemic hits fuel demand

Oil refiners in virus-battered India may decide to ramp up fuel exports as lockdowns across the country cut into local consumption, while a recovery in global demand lifts profits from potential overseas sales.

State-owned Indian Oil Corp. and Bharat Petroleum Corp. are weighing the option of raising oil-product exports against cutting run rates, according to company officials who asked not to be identified. That’s after record infections in India prompted curfews that kept people off the streets and hurt consumption. Outside India, major economies such as the U.S. and China saw a surge in mobility that has lifted the use of gasoline and diesel.

Global oil demand has been on the road to recovery due to the roll-out of vaccines. The overall improvement, however, has been uneven as a deadly second wave rips through some parts of the world.

This week, the OPEC producers’ cartel acknowledged the need for a “cautious and steadfast approach” in managing supplies amid a wider rebound, although it cautioned that the recovery remains at risk from virus outbreaks in India and Brazil.