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.
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.
On Dalal Street, the oil and gas index has dipped sharply, after crude hit the $100 mark.
Surana told Network18 that OPEC-plus countries were not able to ramp up supplies and there was a shortage of around 900,000 barrels.