Refiners Plan to Reduce Oil Imports as Crude Prices Touch Near 4-Year High

Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    In order to curb the foreign exchange outflows, the state-run refineries are planning to reduce crude oil imports. Sanjiv Singh, the chairman of Indian Oil Corporation (IOC) on Monday told PTI that the company was looking at optimizing its inventory level without disturbing the domestic fuel supply in the country. Another report by Reuters quoted the director of Bharat Petroleum Corporation (BPCL) looking at options to reduce inventory as a coordinated effort among investors to cut costs.

    Refiners Plan to Reduce Oil Imports as Crude Prices Touch Near 4-Year High
     

    The decision comes in the light of surging crude oil prices. International crude benchmark Brent has now reached $81.45 a barrel in five weeks from $71 per barrel. Additionally, the Indian rupee fell to new lows in the last one month, now nearing $73/dollar rate, making imports costlier.

    In India, the petrol prices have hit new all-time highs at Rs 82.86 per litre in New Delhi, Rs 84.68 in Kolkata, Rs 90.22 in Mumbai and Rs 86.13 in Chennai.

    The oil prices are rising due to the looming tension over US sanctions on Iranian imports starting 4 November. The Trump administration has been pressurizing governments and countries around the world to cut its purchases from Iran. US President Trump also demanded that the OPEC (Organization of the Petroleum Exporting Countries) should increase its supply to compensate for the shortage from Tehran.

    Iran is the third largest oil producer among OPEC.

    Further, on Sunday, despite Trump's demand, the OPEC after a meeting with its allies in Algeria, announced that it would not increase its output unless its customer demands for cargoes increase.

    Britain, China, France, Germany, Russia, and Iran on Tuesday said they were determined to develop payment mechanisms to continue trading despite the sanctions by the US, but a Reuters report suggested that most analysts expect the sanctions to knock between 1 million and 1.5 million barrels per day (bpd) of crude oil supplies out of global market.

    Read more about: petrol
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more