$80 per barrel is the resistance level for crude prices, said MK Surana, chief managing director of Hindustan Petroleum Corporation Limited, adding that the prices may move slightly higher in the near-future.
“In the near future, crude prices may be slightly higher is what I suspect. But still to assume that it may be going above $85 per barrel or so will be something I will hold my thoughts on right now. I will still consider it will remain more towards $80 per barrel,” Surana said.
“Whenever there is an increase of Re 1 in dollar, it may have an impact of around 0.40-0.45 paisa on the product prices. In today’s scenario, both the crude prices and product prices are high and the dollar is also high. That is a combination of many factors like trade war, the Iran sanction, some impact because of the hurricane situation in US and that is keeping the crude prices high. However, $80 per barrel is the resistance mark in the crude prices but there are also some narrations recently from some of the crude producing countries that above $80 per barrel level also they will be comfortable,” he added.
“Government is working on a long-term situation and one thing they are definitely working is how to reduce the total imports. Honourable Prime Minister has also given a call that we should try to reduce the import by 10 percent. In this direction, increasing the blending of ethanol, increasing the production of ethanol, increase in the efficiencies of the vehicles as well as the industries, refineries saw that the fuel which we burn for production itself gets reduced. At the same time, more use of cleaner fuels like natural gas, bio-gas, CNG – all these multi-pronged approach is being adopted to have alternatives and coupled with renewables as far as power generation is concerned,” Surana further mentioned.