Reliance Industries monitoring OPEC+ supply cut impact on price, demand: CFO

RIL will also monitor potential economic contraction in EU and US as it may impact India’s downstream exports, the official added.

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26 Aug, 2025 12:21

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The recent oil production cut announced by the Organisation of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, might impact demand if prices remain high, V Srikanth, Chief Financial Officer, Reliance Industries Ltd said on April 21 after the conglomerate announced its financial results.

On April 3, OPEC+, announced a surprise supply cut of around 1.16 million barrels per day (bpd), in addition to the earlier cuts, from May till the end of 2023. In October 2022, OPEC had agreed to cut production by 2 million bpd.

Crude oil prices have been on an upward trajectory since the OPEC announcement. US benchmark Brent crude, which had slumped to $72 per barrel, is now trading around $85 per barrel.

“The challenges that we have to look out for is that if there are oil production cuts and prices go up whether it has an impact on demand. One would also look out for any increase in product exports from China,” Srikanth said.

He said that the company will also monitor potential economic contraction in EU and US as it may impact India’s downstream exports.

Reliance Industries on April 21 reported 19.1 percent year-on-year (YoY) growth in consolidated profit at Rs 19,299 crore for the quarter ended March of the financial year 2022-23. Gross revenue from operations of India's most valued company came in at Rs 2.39 lakh crore, registering a year-on-year rise of 2.8 percent.

Gas outlook

Indian gas market outlook remains positive due to lower global prices and higher domestic gas availability, said Srikanth.

Lower global prices make gas more competitive and give more choices to buyers, he said.

RIL operating income from its oil and gas business was at an 8-year high with steady KG D6 production at around 19 mmscmd and higher energy prices. Gas production at KG D6 is likely to increase to 30 mmscmd in FY24 with commissioning of the MJ field, RIL added.