India does not see any immediate impact of the ongoing downslide in global crude oil prices on its domestic oil and gas production.
“Currently there is no visible impact on country’s oil & natural gas production due to slump in crude oil prices,” the Minister of State (I/C) for Petroleum & Natural Gas Dharmendra Pradhan informed the Lok Sabha on Monday.
Decline in Crude oil prices affect revenues and profits of E&P companies and extended declines may even adversely affect their ability to finance planned capital expenditures for major exploration, development and re-development projects resulting in adverse impact on production of oil and gas in the long run.
The Global Crude oil price of Indian Basket was US$ 41.38 per bbl August 5, 2016, higher than the price of US$ 40.76 per bbl a day prior.
In rupee terms, the price of Indian Basket increased to Rs. 2765.10 per bbl on 05.08.2016 as compared to Rs. 2728.63 per bbl on 04.08.2016. Rupee closed weaker at ₹ 66.81 per US$ on 05.08.2016 as against Rs.66.94 per US$ on 04.08.2016.