• 4 minutes Why Trump will win the wall fight
  • 9 minutes Climate Change: A Summer of Storms and Smog Is Coming
  • 12 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 16 minutes Washington Eyes Crackdown On OPEC
  • 3 hours is climate change a hoax? $2 Trillion/year worth of programs intended to be handed out by politicians and bureaucrats?
  • 2 hours Ayn Rand Was Right
  • 3 hours Solar and Wind Will Not "Save" the Climate
  • 13 hours Expected Breakdown: Israel-Central Europe Summit Canceled After Polish Pullout
  • 37 mins Indian Oil Signs First Annual Deal For U.S. OilIndian Oil Signs First Annual Deal For U.S. Oil
  • 14 hours Some Good News on Climate Change Maybe
  • 5 hours Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 2 hours Sanctions or Support: Despite Sanctions, Iran's Oil Exports Rise In Early 2019
  • 1 day IT IS FINISHED. OPEC Victorious
  • 21 hours Oil Prices Bookended for Rest of This Year? Maybe $50 to $80? (My old 'See Saw' theory redux)
  • 20 hours Cuba Charges U.S. Moving Special Forces, Preparing Venezuelan Intervention
  • 6 hours Regular Gas dropped to $2.21 per gallon today
Alt Text

Russian Energy Minister: We Avoided $25 Oil With OPEC Deal

Russian Energy Minister Novak has…

Alt Text

The 30 Most Exciting Wildcat Plays Of 2019

As E&Ps are stepping up…

Alt Text

An Unexpected Bullish Factor For Oil

Slowing U.S. shale drilling activity…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

Trending Discussions

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

Trending Discussions


Leave a comment

Leave a comment




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