India Fast-Tracks State Company Stake Sales to Cover Oil Shock Costs
Nigeria's NNPC Revenue Drops in May Despite Higher Oil Output What I Cover Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,… India is accelerating a plan to sell stakes in major state-held companies as it looks to raise billions of U.S.
dollars to plug the gap left by the oil shock from the Strait of Hormuz closure.
The Indian government has identified eight state-owned companies in which it would seek stake sales in the coming months, including in major insurers and banks, sources with knowledge of the plan toldBloombergon Thursday.
The proceeds from the stake sales could be worth $1 billion each for some of the biggest firms, such as the biggest life insurer, the Life Insurance Corporation of India (LIC), according to Bloomberg.
India is looking to shore up itsfinancesafter the Iran war caused a major supply shock and an equally large price shock to India’s energy import bill, which soared in March, April, and May.
India, which relies on imports for nearly 90% of its oil consumption, and on imports of LPG, its main cooking fuel, has seen a few testing months since February 28, as it had to pay up for supply that wasn’t dependent on the Strait of Hormuz, at prices above $100 per barrel.
As a result, the oil price spike has weighed on the Indian currency, economic growth, budget deficit, and the current account.
In April and May, economists and India’s own central bank downgraded the expected economic growth for the fiscal year through March 2027, due to the energy price shock.
More recently, a senior official at the Reserve Bank of India said that the economycould returnto the trajectory to grow by 7% and even more in the 2026/2027 fiscal year if oil prices remain close to the current $70 per barrel.
Oil prices at about $70 a barrel and a pick-up in tanker traffic at the Strait of Hormuz would reduce upward pressure on India’s inflation and improve the outlook for its economy, Nagesh Kumar, an external member of the Reserve Bank of India’s monetary policy committee, toldBloombergin an interview published last week.
Japanese Banks Commit $496 Million to India's Power Grid Expansion Nigeria's NNPC Revenue Drops in May Despite Higher Oil Output What I Cover Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,… Oil Prices Plunge as U.S.
and Iran Reach Deal to Reopen Strait of Hormuz Australia's 344-Million-Barrel Oilfield Could Finally Get the Green Light Oil Prices Rebound as U.S.-Iran Peace Talks Are Postponed ING: Oil Prices Have Overshot To The Downside Kuwait Says Oil Output Won't Recover for 10-12 Weeks After Hormuz Reopens Russia’s China Energy Lifeline Is Becoming a Noose Guyana’s Oil Boom Gets a Major Boost From $100 Crude U.S.-Iran Deal Doesn’t Mean a Swift Return of Oil and Gas Flows The materials provided on this Web si.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
Comments
Post a Comment