Oil prices rose to their highest level since November 2018 on Monday, driven upwards by OPEC's ongoing supply cuts, US sanctions against Iran and Venezuela, fighting in Libya as well as strong US jobs data.
MK Surana, chairman and managing director (CMD), Hindustan Petroleum Corporation Ltd (HPCL), shared his views and outlook.
As far as crude prices are concerned, there are specific issues such as sanctions against Iran and Venezuela and unrest in Libya are giving rise to momentary spikes.
“However, I still see long-term crude prices at $65-70 per barrel,” he Surana said.
On business, Surana said, “Our Vizag refinery expansion is on track and the activities are in full swing. As I mentioned, when the expansions come into commissioning, our capacity of Vizag refinery will increase from 8.3 million metric tonne to 15 million metric tonne."
"The gross refining margins (GRMs) will improve substantially of Vizag refinery. So, we are looking for volume growth as well as the profitability growth in Vizag refinery,” Surana added.