Oil marketing companies likely to feel the heat of high crude oil prices

India’s trade account could come under pressure and there could be an inflation push if crude oil prices remain above the $90 per barrel (Brent) for a prolonged period since India imports over 85 per cent of its oil and roughly 50 per cent of its gas.

A rebound in economic activity is bound to lead to higher fuel demand. While India is the third-largest importer of crude, it is a net exporter of refined products, which helps to compensate to some degree.

The recent price surge is due to the supply reduction announcements from Russia and Saudi Arabia. Saudi Arabia has set a production target of 9 million barrels per day (mbpd) for the remainder of the year, down