Chairman of Indian Oil Corporation expects crude prices to stabilize between $65 and $70

Arvinder Singh Sahney, chairman of state-owned Indian Oil Corporation, expects global oil prices to stabilize in the range between $65 and $70 per barrel through the end of the fiscal year. However, he points to the risks of them dipping below $65 per barrel.

The chairman notes that the oil market is now facing an excess supply, which may continue to increase. Sahney adds that Brent crude price near $70 is appropriate. 

Many analysts echo the opinion of Indian Oil Corporation. They do not see much room for crude prices to be higher than $70 per barrel as OPEC+ proceeds with production hikes and global trade uncertainty is expected to persist in the near term. 

Meanwhile, advantage of discounted Russian oil over other grades has diminished for India as the international benchmark prices have steadied within the $65–70 range, Sahney says. At the same time, oil from Russia accounts for 20–24% of all crude purchases by Indian Oil Corporation, the country’s largest refiner. The average for India is now about 35%.