NEW DELHI: As crude oil prices rise and Russia implements its production cut, the global oil market is likely to experience tighter supplies and higher prices. Analysts predict a greater impact on Indian oil refining companies in addition to the global market. Despite Russia’s announcement of a five-lakh-barrel-per-day cut, Singapore’s Gross Refining Margins (GRM) have begun to fall.
As one of the world’s main oil importers, India’s refineries will continue to be of interest for three reasons. The first is that crude has once more started to increase in price. The second reason is that Russia will reduce its crude output. The declining Singapore Gross Refining Margins is another element that will have an impact on the profitability of Indian refineries.
