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HPCL CMD MK Surana speaks on factors driving up crude prices

Three factors roiling the crude prices. One is the Russia-Ukraine crisis, the second is the Iran-US standoff, and the third is the OPEC's failure to ramp up production

February 25, 2022 / 02:56 PM IST
HPCL Chairman and Managing Director MK Surana

HPCL Chairman and Managing Director MK Surana

Russia-Ukraine standoff impacts oil prices and markets across the globe. Brent crude prices have risen sharply. MK Surana, CMD, HPCL, speaks on the various factors currently affecting the crude prices.

Brent futures, which have been on the boil in recent weeks over the Ukraine-Russia crisis, soared past the $100 per barrel for the first time since 2014 as traders fear further sanctions could hit Russia’s crude oil export.

“There are three factors affecting the crude prices. One is the Russia-Ukraine crisis. The second is a contrarian view coming over the Iran-US discussions. The third is the constant inability of OPEC to ramp up production up to the need. So, there is a shortage of 900,000 barrels per day,” Surana told CNBC-TV18 in an interview.

Catch all Live Updates on Russia-Ukraine tensions here

Rising crude is a big worry for India, which meets 85 percent of its requirements through imports. The US and the other western countries are imposing sanctions on Russian entities after it recognised two breakaway regions of Ukraine and ordered troops in. This is fanning supply concerns, as Russia is the second biggest exporter of crude after Saudi Arabia.

Close

On Dalal Street, the oil and gas index has dipped sharply, after crude hit the $100 mark.

Supply Shortage

Surana told Network18 that OPEC-plus countries were not able to ramp up supplies and there was a shortage of around 900,000 barrels.

The domestic demand for petrol was reaching the pre-pandemic level and that of diesel, too, would go up with the international travel likely to open from mid-March.



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first published: Feb 24, 2022 11:01 am
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