IOC Chief Arvinder Singh Sahney: Sanctions Against Russia Will Not Impact Oil Prices in India

India's crude oil needs are unlikely to be affected by any new sanctions on Russia, according to Indian Oil Chairman Arvinder Singh Sahney. Speaking at the World Economic Forum Annual Meeting, he mentioned that global oil prices should remain stable between USD 75-80 per barrel. He noted that concerns about sanctions have already been considered in current pricing.

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India imports around 87% of its crude oil, and Sahney highlighted the importance of having multiple energy sources. He stated that if sanctions reduce Russian oil supply, India has alternative sources like the Gulf, OPEC, and others. "We have not left our other sources," he added, ensuring India's energy security remains intact.

Impact of Sanctions and Energy Sources

Sahney explained that before the Ukraine conflict, India sourced less than 2% of its oil from Russia. Post-conflict, as Europe reduced purchases from Russia, India increased its imports. However, if sanctions affect this supply, India can rely on other countries to fill the gap. He assured that there is no shortage of crude oil globally.

Discussing potential impacts on global prices, Sahney noted that initial sanctions had pushed prices to USD 83 per barrel. However, prices have since decreased to around USD 79. He believes prices will stabilize within the USD 75-80 range as all concerns have been addressed.

Energy Sector and Global Interactions

Regarding Donald Trump's potential second term as US President, Sahney expressed optimism for India's energy sector. Trump has emphasized increasing energy production and exploring diverse sources. Sahney believes this approach aligns with India's need for varied energy supplies.

At Davos, Sahney appreciated India's significant presence and the opportunity to engage with global corporates. "It helps as so many global corporates we can meet here at a single place," he said. This interaction benefits both Indian companies and the broader economy.

On budget expectations for the energy sector, Sahney mentioned that current government support is sufficient. "Whatever specific support we need, we are already getting," he stated. He does not foresee any negative outcomes for the sector in the upcoming budget.

In conclusion, Sahney reassured that India's energy needs will remain secure despite potential geopolitical changes. With diversified sources and stable global prices, India is well-prepared to handle any challenges in the energy market.