Daijiworld Media Network – New Delhi
New Delhi, Jul 7: Crude oil prices are expected to hover between $65 and $70 per barrel for the rest of the financial year, with room for a possible dip below the $65 mark, said AS Sahney, Chairman of Indian Oil Corporation, on Monday.
“There is an oversupply in the system and more is expected. The price point near $65, plus or minus a couple of dollars, is where we are comfortable,” Sahney said in an interview with NDTV Profit.
The current crude oil landscape, according to Sahney, reflects a balance driven by commercial viability rather than geography. Russian crude, once available at a steep discount, now constitutes 20–24% of Indian Oil's monthly imports, and around 30–35% for the entire industry. However, with global prices stabilizing, that price advantage has diminished.
“We’re not going by geography; we are going by commerce. It’s purely a commercial decision for our refineries,” he stated.
India still sources 40% of its crude from the Middle East, with the rest coming from various other regions. Indian Oil currently imports crude from over 40 countries, as part of its energy security strategy.
Turning to products, Sahney said diesel remains the most profitable for Indian refiners, followed by petrol and aviation turbine fuel. On LPG, he noted that US shipments currently headed to China could be redirected to India due to evolving trade patterns. “There is a possibility that LPG from the US might find a home in India and other Far East countries,” he noted.
With refinery expansions ongoing, Indian Oil is eyeing heavy investments in petrochemicals, leveraging its integrated production model. “We use our own naphtha and gas as feedstock, which offers a cost advantage. Petrochemicals are a go-to business for us,” he added.
Sahney also stressed that down cycles are the best time to invest, preparing the company to capitalise on the next growth phase.
Indian Oil shares were trading 1.21% higher at Rs 153.45 on the NSE at 12:04 pm, even as the Nifty 50 slipped by 0.11% to 25,433.5.