July fuel demand in India rebounded to its highest since April as New Delhi cleared restrictions and lockdowns, netting a 3% month-on-month increase to a total of 16.83 million tons.

The rebound might have been even more pronounced, were it not for fuel prices rising to all-time highs, triggered by a chaotic taxation regime.

In India, petroleum products are not included in the goods and services tax regime, meaning every state can set its own fuel tax levies and they have been on the rise throughout 2021, up 20% year-on-year already.

Analysts anticipate India surpassing its pre-pandemic consumption readings in Q4-2021, with fuel pricing remaining the primary factor in the extent of demand recovery.

Crude imports in June-July dropped to average 2014-2015 levels of 3.5 mbpd, but August loadings have surged to a healthy 4.2 mbpd on the back of demand recovery.

Market Movers

Saudi Aramco (TADAWUL:2222) saw its Q2 results surge as higher oil prices brought its net profit to $25.5 billion, quadrupling year-on-year. Aramco’s capex infrastructure has been increasing q-o-q as the Saudi NOC seeks to ramp up offshore spare production capacity.

Australian miner BHP (NYSE:BHP) managed to stave off a union strike at the Escondida copper mine in Chile, the world’s largest, though negotiations are still yet to yield results. With copper prices almost 25% up on the year, the strike would see copper skyrocket.

US electric vehicle producer Tesla (NASDAQ:TSLA) saw its July sales in China plunge by almost 70% month-on-month, despite having dropped the starting price for Model 3 sedans, sapping confidence in future prospects.

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