Davos: Indian Oil Corporation (IOC) Chairman Arvinder Singh Sahney has reassured that any further sanctions on Russia will not impact India’s crude oil needs. Speaking at the World Economic Forum Annual Meeting, Sahney stated that fears over sanctions have already been factored into global markets, and oil prices should remain stable in the range of USD 75-80 per barrel.
India, which imports nearly 87% of its crude oil, has diversified its sources, ensuring energy security even in the face of geopolitical challenges. Sahney emphasized that while India began importing more oil from Russia after the Ukraine war, the country continues to rely on a variety of global suppliers, including the Gulf, OPEC, OPEC-plus, the US, Guyana, and Brazil. “We have not left our other sources, and there is no dearth of crude oil,” he said.
Addressing concerns about the impact of potential sanctions on Russia, Sahney noted that any reduction in oil supply from Russia would be offset by alternative sources. He also assured that India’s energy security would remain intact, regardless of sanctions or market fluctuations.
Regarding global oil prices, Sahney pointed out that while prices briefly spiked to USD 83 per barrel after sanctions were imposed, they have since stabilized to around USD 79. “All concerns were already factored in, and I believe prices will remain in the USD 75-80 range,” he added.
Sahney also discussed India’s participation at Davos, highlighting the importance of engaging with global corporates and exchanging ideas to foster economic growth. On the potential impact of a second US presidency under Donald Trump, he expressed optimism for the energy sector, noting that Trump’s emphasis on increasing energy production would benefit India’s energy requirements.
Looking ahead, Sahney stated that the energy sector’s relationship with the government remains strong, with no specific additional demands for support at present. “Whatever specific support we need, we are already getting,” he concluded.
