India's oil imports from US, Venezuela largely a function of price: ONGC Chairman
At least 60% plus of India’s oil imports is a function of the price in that particular month or M+2: Arun Kumar Singh
India's oil imports, particularly from the US and Venezuela, are largely influenced by prevailing crude oil prices, according to Arun Kumar Singh, Chairman and CEO of Oil and Natural Gas Corporation (ONGC). Speaking at the company's Annual General Meeting, Singh stated that over 60% of India's oil imports are determined by the price in a given month or M+2 period.
MRPL, a subsidiary of ONGC, primarily imports crude oil for its refinery operations based on price, except for term crude supplies, which are expected to decrease gradually. Singh emphasized that ONGC's integrated business model, with 60% in exploration and production (E&P) and 40% in non-E&P, provides a cushion against crude oil price volatility.
He also noted that downstream businesses can benefit when crude prices rise, offsetting pressures in other areas. Singh's comments come amid global shifts in crude oil trade flows, with refiners assessing supplies based on price and market conditions. Regarding potential supply disruptions, Singh expressed confidence that crude oil would remain available to India, highlighting the company's preparedness for a price range of $60-90 per barrel.
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