Business Daily from THE HINDU group of publications
Wednesday, Sep 10, 2008
ePaper | Mobile/PDA Version | Audio
Business Daily from THE HINDU group of publications Wednesday, Sep 10, 2008 ePaper | Mobile/PDA Version | Audio |
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Industry & Economy
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Petroleum Indian crude basket may range between $99-$101/barrel Our Bureau New Delhi, Sept. 9 Easing of the global crude oil prices could result in decline in prices at which India buys its crude to below $100 a barrel. The Indian basket, which had touched a five-month low on Monday at $101.65 a barrel, could be in the range of $99-$101 a barrel on Tuesday, industry officials said. The Indian crude basket comprises Oman-Dubai sour grade crude and Brent dated sweet crude in a 62.3:37.7 ratio. However, the recent trend shows that Dubai-Oman crude does not necessarily follow the Brent movement, sources said. On Monday, while Dubai-Oman crude oil prices went up marginally, the dated Brent crude fell 39 cents a barrel to $101.64. While the dip in crude oil prices would lessen the under recovery burden on the public sector oil marketing companies (OMCs) to some extent, the depreciation in rupee versus dollar would have an adverse impact on the profitability of the companies. Weak rupeeThe international oil prices have fallen nearly 30 per cent since it touched its peak of $147.27 a barrel on July 11. On the other hand, the rupee has depreciated almost five per cent since the last retail selling price increase of petrol and diesel in June. While the Indian basket was at $123 a barrel, the rupee was at Rs 42.5 versus dollar in June when the Government had raised petrol and diesel prices by 10 per cent to partly offset the impact of surging international crude oil prices on OMCs. If the current crude prices continue, the under recoveries to be suffered by the OMCs is estimated to be Rs 1,65,000 crore on sale of petrol, diesel, domestic LPG and kerosene during the current fiscal on account of selling them below the market price. The Indian basket has averaged $104.05 a barrel so far this month. More Stories on : Petroleum
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