India's Oil and Gas Sector Struggles with Soaring Prices
India's oil and gas sector is facing pressure due to high crude oil and LNG prices. The country has to contend with the fallout of the Iran war on global oil and LNG trade flows, which has resulted in reduced oil flows from the Middle East and increased shipping risks.
The surge in oil prices has led to a 60% increase in India's crude oil import bill compared to the same period last year. The country paid 41% more for crude oil imports in July compared to the same month last year, according to OilPrice.com.
Meanwhile, Asia's spot LNG price surged by 61% from a year earlier and a 22% increase in the past three months, putting pressure on India's gas sector. The higher LNG prices are expected to squeeze margins in the gas sector and lead to softer September imports of LNG, according to India-based brokerage Equirus.