Prime Minister Narendra Modi’s government, in its pursuit of economic reforms, is looking to remove the entry barriers for foreign companies to sell transportation fuels in India’s lucrative market. This may be a step too far — and possibly even detrimental to the domestic oil refiners and marketers.
Japanese industrial gas producer Air Water said Wednesday that it will acquire Indian facilities from German peer Linde for 13.8 billion rupees ($194 million), as the company stretches its footprint in India from the northeast into much of the south.
The threat to the Asia’s vital oil supplies from the Middle East has escalated sharply since four oil tankers were sabotaged in the Gulf of Oman on May 13. A second attack on oil vessels in the region in June, the arrest of a British-flagged oil tanker by Iran’s revolutionary guards
Iran is not the only country that will suffer greater pain under U.S. sanctions, with Washington suddenly ending waivers that enabled Tehran to export limited amounts of crude over the past six months. China
India is seeking to diversify its oil import sources amid tough U.S. sanctions on Iran and Venezuela, two key members of the Organization of the Petroleum Exporting Countries that provides the bulk of its crude needs.
India is likely to seek cooperation in obtaining cheaper energy when Saudi Arabia’s Crown Prince Mohammed bin Salman visits the nation on Feb. 19-20. This will be the crown prince’s first visit to the region since the murder of Saudi journalist
India’s demand for crude oil is rising at a pace that will outstrip China’s volume of growth and put the country right behind the U.S. in this measure, a position that will allow the South Asian country to expand its influence in the market for the essential commodity.
The 30% slide in international crude oil prices from four-year highs notched in early October could well benefit the chances of Prime Minister Narendra Modi’s ruling Bharatiya Janata Party in India’s general elections, to be held in the spring.
As the global economy is buffeted by U.S. President Donald Trump’s trade dispute with China and a government shutdown in Washington that has stretched into the new year, equities and commodities markets around the world are edgy.
India’s electricity industry is in a financial and political tangle. Power producers sit on thousands of megawatts of underutilized plant, while consumers face frequent power cuts, both planned and unplanned.