Crude oil prices slipped by 3 percent overnight after US President Donald Trump called on Organization of the Petroleum Exporting Countries (OPEC) to ease its efforts in boosting crude prices. MK Surana, CMD of Hindustan Petroleum Corporation Ltd (HPCL) shared his views and outlook on what is the road ahead.
In terms of inventory gains, he said, “Q3 ended with an average of around USD 57 per barrel, and right now we are looking at somewhere in the range of USD 65-68 per barrel. So, definitely there is a gain of around USD 7-8 per barrel, which will help us in our gross refining margins (GRMs) as well as the overall bottom-lines.”
He further added, “Crude prices have been fluctuating a lot, however I did say earlier that while there was an increase in the crude prices, there was a rebound possible. I still expect it to be in the range of USD 63-68 per barrel. The overall crude prices are getting guided by a lot many factors right now and there is more demand concerns than the supply concerns."
Surana continued that there is an overall degrowth worldwide as far as Europe and China are concerned. He expects prices of oil to be in the range of below USD 70 per barrel.
He also spoke about tensed US-China trade talks which has affected the crude oil demand massively. He raised concerns surrounding Nigeria and Libya which stood as one of the reason why oil products demand remained sluggish in November.