Crude Shock: As Prices Could Hit $100 Per Barrel, India To Cut Down On Imports 

India may cut down on oil imports if oil prices touch $100 per barrel as per some forecasts, an exclusive report by Reuters has reported. India will rely on cheaper oil stored in reserves to make up for the cut down in imports.

Commodity merchants Trafigura and Mercuria have predicted that oil prices may shoot up to $100 in the wake of sanctions against Iran, which will kick in upcoming months. Soaring oil prices have coincided with the phenomenon of a falling rupee. The combination makes oil 47 per cent more expensive in rupee terms, according to Reuters.

“Apart from other options, we are also considering reducing inventory to cut import costs,” Chairman of Indian Oil Corporation (IOC), Sanjiv Singh, said, confirming the information received by Reuters from two sources. IOC is India’s biggest oil refiner.

Compared to its lowest price for the year reached on 13 February, Brent Oil has climbed by 30 per cent and reached $80.47.