Crude oil rates likely to remain in current range: IOC chief

Crude oil prices are likely to remain in the current range which may lead to fall in the fuel price for consumers, Indian Oil Corporation Chairman B Ashok said today.
"Looking at the current trend and global developments, we certainly believe that the crude prices are likely to remain in the current range," he told reporters here.
When the crude oil prices remain in that range, he said, "One as a consuming country it is extremely good for India as we import nearly 80 per cent for our requirement. Second, there will be a fall in prices for the consumer. So to that extent that is a gain for us as a country as a whole".

Stating that for an oil company the fall in crude prices have to be balanced, he said, "We could have inventory gains or losses, depending on when you have sources for crude and what time our valuation is being done".
"We do not expect the fall which had happened like last year. It fell from USD 115 to USD 42. So, the fall that had happened last year 2014-15, and that sort of inventory losses are not anticipated again", he said.
Global oil prices for September delivery were at trading at USD 43.57, while the Brent crude for September was trading at USD 48.25 today.

For the Indian basket, the oil was priced at USD 49.11 per barrel today against USD 55.15 per barrel in the previous fortnight.

Asked whether the company was exploring options in Nigeria for sourcing crude oil, he replied in the affirmative.
"Nigeria continues to be a big source for IOC including to CPCL. In terms of our source as a crude supply, thats about our commitment in terms of Nigeria.", he said.
"We are keeping our options open. In Nigeria there are changes happening. New government is in place now. We will have to see what sort of opportunities are there. So, we will take a decision at the appropriate time," he added.