India146;s refinery output falls for first time in three years

It was the first decline in refiners8217; processing since October 2005, when production slowed by 2.5 percent as Reliance partially shut its refinery for maintenance. Reliance refined peak 2008 output of 768,230 bpd in July, when margins were strong and global crude oil prices touched a record 147 a barrel, but by November this had slid to 712,960 bpd. Refineries in Asia8217;s third-largest oil consumer processed 3.132 million barrels per day bpd of crude in November, when margins for Asian refiners were at minus 1.18 per barrel. They processed 3.168 million bpd in November 2007. Overall, refiners8217; utilisation ran at 104.7 percent of installed capacity in November, down from 106.2 percent a year ago, according to the government data. Figures released last week showed oil product sales rose a sluggish 2 percent in November from a year earlier, reflecting weak demand in a faltering economy.

India8217;s 1 trillion economy, Asia8217;s third-biggest, has shown palpable signs of slowing amid the deepening global gloom after expanding at 9 percent or above for the past three years. Total sales of refined oil products, a proxy for demand in India, rose to 10.99 million tonnes the month, the data showed.