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ONGC CEO says India’s spot crude imports hinge on cargo prices
The executive said at least 60.0% of India’s oil imports are driven by price in the month or M plus 2, even as term crudes decline.
India’s spot crude oil imports are mainly determined by prevailing cargo and oil prices, according to the chairman and CEO of India’s state-owned Oil and Natural Gas Corporation, Arun Kumar Singh, speaking after the company’s annual general meeting, as reported by OilPrice.
Singh said imports are decided by price except for term crudes, and that term crudes are gradually going down. He added that spot crudes are largely decided on a cargo-to-cargo basis and suggested that at least 60.0% plus of India’s oil imports is a function of the price in that month or M plus 2.
On the question of supply during geopolitical disruptions, the ONGC executive said India will always be able to find crude to import, emphasizing that economics ultimately prevails even if geopolitical issues can last for months or years, per OilPrice.
Despite reduced dependence on primary energy imports, India remains highly reliant on crude oil imports, with crude accounting for 90% of consumption, OilPrice reported, noting India is the world’s third-largest crude oil importer.
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