As crude oil prices continued to hold above $78 a barrel, Regina Mayor, global sector head energy and natural resources, KPMG, said that current crude oil prices pose a big challenge for India and the country needs a balanced mix of energy product imports.

According to Saudi Arabia, the crude oil prices should be $80 a barrel or higher and some of the other integrated oil companies argue that it should be around $30 a barrel. However, Regina expects $60-65 a barrel to be a more rational price.

On expecting Organization of the Petroleum Exporting Countries (OPEC) to maintain the cuts, she said, "What they are finding is, the actions while maybe not directly correlated with what they are doing, it is obviously having an overall positive effect and I do not see them wanting to take any action that would have a reason for drawing that price back down.”

First Published:May 16, 2018 5:29 PM IST