According to industry insiders, Oil and Natural Gas Corp. have for the first time sold oil through a three-month local tender, fetching $5 to $8 per barrel more than the going rate due to new regulations that give producers marketing discretion. The biggest oil explorer in the nation, ONGC, accepted bids at the such level through an auction for light sweet oil from its western offshore field, including supplies from Mumbai High oilfield, they claimed.
The requirement that oil from blocks issued before 1999 be sold to clients designated by the government, mostly state refiners, was eliminated in June by India. As a result, companies like ONGC and Oil India frequently sold the oil from such blocks below market price. Tuesday’s early Asian trading saw oil prices remain stable as signs that producer group OPEC+ was trying to prevent a price decline and a minor easing of the US dollar helped to ease an earlier selloff.
As of 00:33 GMT, Brent oil prices were up 26 cents, or 0.3 %, to $84.32 a barrel, while US West Texas Intermediate (WTI) crude futures were up 19 cents to $76.90 per barrel. As a result of the strengthening US dollar, both benchmarks fell by around $2 per barrel on Monday. Ihsan Abdul Jabbar, the oil minister for Iraq, stated on Monday that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, which includes Russia, known as OPEC+, were keeping an eye on the oil price situation in order to keep the markets balanced.
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