Do not expect fall in crude prices in near-term: MRPL

In an interview to CNBC-TV18, PP Upadhya, MD of MRPL said lifting of a European Union ban on insuring tankers carrying Iranian crude is a positive step but he does not expect any fall in crude prices in the near-term.

Brent crude dropped more than USD 2 a barrel on Monday as supply fears eased following a breakthrough nuclear deal between world powers and Iran over the weekend.

Tough sanctions against Iran in the past two years have slashed exports from the OPEC member by more than half and cost Tehran billions of dollars in revenue losses a month, keeping Brent above USD 100 a barrel despite weak global demand.

Indian companies importing oil from Iran had no mechanism to make payments. But with this deal, Upadhya said, some payment mechanism will open up and MRPL will be able to make payments. About 35 percent of payment is in rupee, the balance in euro or dollar. The money due to Iran is pending in India.