The Russian invasion of Ukraine has opened up opportunities for arbitration that are so attractive that Reliance Industries Ltd. Defeated of maintenance work in the largest oil purification complex in the world to produce more diesel and naphtha after prices soared.
Refiner, owned by Indian billionaire Mukesh Ambani, bought a crude oil cargo discounted after binding on Russian fuel by several European Union companies pushed margins on several oil products to three years.
Reliance giant twin refineries can process around 1.4 million barrels every day from almost all varieties of crude oil. The company is also known for its agility in oil trade, which helps him benefit from price changes.
We have minimized the cost of raw materials with a source of barrel arbitration,” said Head of Finance Combined V. Srikanth at the Friday Briefing.
Indian refiners have absorbed a barrel discount that is shunned by the US and its allies who are trying to isolate the Vladimir Putin government. The flow of Russian oil to India is not subject to sanctions, and while purchases remain very small compared to the total consumption of India, they help keep the lid quickly accelerate inflation that triggers protests in other parts of the child.
State and Private Rectoctors in the third largest oil importer in the world have bought more than 40 million barrels of Russian crude oil since the war at the end of February, Bloomberg reported.
Diesel margin shot 71% in January-March from the previous quarter, while those who used gasoline rose 17% and Naphtha prices rose 18.5%, according to the company’s presentation.
Reliance, based in Mumbai, which resulted in about 60% of its income from oil, reported quarterly profit that was lower than Friday estimates as a higher tax obligation and the cost in other parts of the conglomerate offset profit made from fuel exports. Net income rose 22% to 162 billion rupees ($ 2.1 billion) in three months ended March 31, failed to reach an average of 168.2 billion Rupee’s profit estimated by the Bloomberg survey of the analyst.
Reduction of diesel imports by Europe from Russia and low global inventory” will support margin, said Srikanth. However, the possibility of disturbance from the surge of Coronavirus in China and other supply chain problems can damage demand, he added.