• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 8 minutes The Inconvenient Truth Of Electric Cars
  • 12 minutes The Plastics Problem
  • 1 hour SHALE MAGIC: Let the oil flow: US to lead oil output growth through 2030: ConocoPhillips chief economist
  • 32 mins Philadelphia Energy Solutions seeks to permanently shut oil refinery - sources
  • 5 hours To be(lieve) or Not To be(lieve): U.S. Treasury Secretary Says U.S.-China Trade Deal Is 90% Done
  • 1 hour Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 34 mins IMO 2020
  • 3 hours EIA reports 12 mm bbls Inventory draw . . . . NO BIG DEAL . . . because U.S. EXPORTED RECORD 12 MILLION BARRELS DAY OF CRUDE + PETROLEUM PRODUCTS ! ! ! THAT'S HUGE !
  • 2 hours Its called reality: Economic, policy challenges to make Asia's energy transition painfully slow
  • 50 mins Ireland To Ban New Petrol And Diesel Vehicles From 2030
  • 12 hours Looks like Trump is putting together a "Real" Coalition to protect Persian shipping lanes. Makes perfect sense. NO Fake "Coalition's of the Willing" UPDATE REUTERS Pompeo "Sentinel Program"
  • 7 hours On the hobby side of things
  • 12 hours Here we go folks, the wish of so many: Pres. Trump threatens to lessen US security role in Strait of Hormuz, unveils sanctions
  • 2 hours Oil Demand Needs to Halve: Equinor
Alt Text

The Single Biggest Factor For Oil Price Forecasts

The U.S.-China trade war is…

Alt Text

The Irony of California’s Oil Dependence

California’s oil production has been…

Alt Text

Two Events That Will Determine Oil Prices

The next couple of weeks,…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

India’s State Refiners May Hedge Oil Futures Amid Currency Rout

India plans to ask its state-held oil refiners to lock in the price of their crude oil futures purchases amid a sliding local currency and expectations of higher oil prices when U.S. sanctions on Iran return in early November, Reuters reports, quoting a government source.

Over the past few months, rising oil prices and the weakening Indian currency, the rupee, have already created a perfect storm for India, where oil demand growth has been surging, but the higher oil prices are increasing the country’s spending on crude oil imports, which account for 80 percent of Indian oil consumption.

To make matters worse, the Indian rupee has been the worst performing currency in Asia so far this year, losing around 12 percent of its value against the U.S. dollar year to date.

India’s state refiners—who receive 70 percent of their oil through term contracts and the rest in deals on the spot market—have not been too keen to hedge futures contracts in the past because they have feared a backlash if hedges go wrong, Reuters notes.

According to officials at several large Indian state-held oil refining and marketing companies who spoke to Reuters, the state oil refiners would look into the possibility to hedge forward contracts, should the government ask them to do so.

Indian Oil Corporation is considering some forward contracts, a senior official told Reuters, declining to specify what the official described as “market sensitive information.”

BPCL is trying to hedge margins, while an HPCL official told Reuters that the government hadn’t asked it to lock in futures prices, but would “look into it” if the government asks and if it is needed.

The Indian government fears that the rupee depreciation could continue over the next two months, if government measures to stem the speculation on the rupee market fail, a senior finance ministry official told Reuters.

By Tsvetana Paraskova for Oilprice.com

More Top Reads from Oilprice.com:




Download The Free Oilprice App Today

Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News