India's crude oil production fell 4.5 per cent in June following a sharp drop in output at fields operated by private firms. Crude oil production at 2.96 million tons in June was lower than 3.1 mt produced in the same month last year, an official statement said here. While state-owned Oil and Natural Gas Corp produced 2.75 per cent less crude oil at 1.85 mt, fields operated by private companies saw output drop by almost 8 per cent to 975,890 tons.
Crude oil production at private fields was lower because of natural decline at Cairn India-operated Mangala oilfield in Rajasthan and BG-operated Panna/Mukta fields while under- performance of Bhagyam oilfield well in Cairn's RJ-ON-90/1 block in Rajasthan. Also, Reliance Industries' KG-D6 well under-performed due to sand ingress and water loading. Crude oil production in the first quarter, April-June, of the current financial year was 3.3 per cent lower at 9 mt.
Natural gas production dipped 4.5 per cent to 2.59 billion cubic meters on back of drop in output from private firm operated fields like KG-D6 of RIL. During the quarter, natural gas output dipped over 6 per cent to 7.7 bcm, the statement said. Refineries produced 3.51 per cent more fuel at 20.16 million tons in June and about 1 per cent higher in April- June at 60.27 mt. Meanwhile, Oil prices dipped in Asia on Friday, extending the previous day's sharp losses. Analysts said, the ongoing global supply glut would likely linger. The commodity has come under pressure in recent weeks following Britain's shock EU exit vote, while the US heads for the end of the summer holiday driving season with stockpiles still high.
Prices sank two per cent Thursday as traders were left disappointed by the lack of forward guidance from the European Central Bank on its stimulus, while the Bank of Japan's governor threw cold water on hopes for robust measures from Tokyo. Lower expectations for stimulus dented demand hopes, although they did help send the dollar down against the yen and euro, making crude cheaper for anyone holding the other currencies.