Sanjeev Choudhary

The Reserve Bank of India is implementing measures to support the rupee, addressing recent pressures on the currency.

Recent actions by Donald Trump to secure Russian diesel imports highlight the complexities of US energy policy, balancing domestic fuel prices against geopolitical strategies. Despite urging allies not to buy Russian oil, the US continues to navigate a delicate landscape where affordable fuel remains a political priority ahead of the midterm elections.

Indian Gas Exchange has received regulatory approval to develop a capacity booking platform for LNG terminals. This platform aims to facilitate easier and more transparent access to terminal capacity for users. The regulator noted that many terminals experience poor capacity utilization currently. By using the platform, market participants can identify and book available regasification capacity efficiently. Contractual negotiations and settlements will still be managed directly between buyers and sellers involved.

Sunil Kumar has been appointed as chairman of ONGC, succeeding Arun Singh, effective December 7. Kumar's appointment follows recommendations from a selection committee that interviewed various candidates. He enters the role at a time of turmoil in the global energy market and heightened oil and gas prices. Singh's tenure saw improved profits and strategic partnerships that bolstered ONGC's output and operations.

India has increased its liquefied natural gas imports from the US, Oman, and Nigeria significantly since the Iran war. The country now imports about 68% of its LNG from these suppliers, compared to just 25% last year. Qatar's contribution has dropped to 3% from 45%, highlighting a major shift in sourcing strategies. Domestic gas consumption has remained steady, driven by the expanding city gas sector.

The Indian government will provide financial support under the Samudra Manthan scheme for deepwater drilling activities. Recently issued guidelines extend this support to previously awarded Open Acreage Licensing Policy and Discovered Small Field blocks. Additionally, the financial assistance covers seismic surveys and a portion of exploratory well costs. Recovery of government funding will begin after commercial production or upon recovering 50% of costs.

The Indian government extends deepwater drilling financial support to previously awarded offshore blocks, enhancing exploration and infrastructure under the Samudra Manthan initiative, aiming to boost oil and gas production.

India's petroleum product export earnings increased significantly in April to September, driven by high international prices. While the volume of shipments declined by 16%, earnings surged by nearly 50% in rupee terms. Diesel exports were the largest contributors to the earnings growth, accounting for 42% of the total volume. Both diesel and petrol consumption rose during this period, whereas production saw slight declines.

Indias earnings from petroleum product exports surged nearly 50% on-year in rupee terms to ₹2.59 lakh crore in April-September, as soaring international prices and a sharply weaker rupee boosted returns despite a 16% decline in shipment volume.

With freight rates reaching unprecedented levels, Indian refiners are facing escalating crude oil expenses that are eroding their margins. Notably, oil in the physical market is trading at a considerable premium over Brent futures, making Middle Eastern imports more desirable. The Iran conflict has led to congestion and trade shifts, aggravating delivery challenges. As a result, Indian refiners are increasingly turning to Gulf crude to meet their needs.