Kotak sees crude at $145 in physical market, $100 on screen
In short
Kotak Securities said crude oil could cost about $145 a barrel in the physical market even if the benchmark stays near $100. It linked the gap to higher VLCC shipping costs.
The note says India may be partly shielded by its refining capacity and varied supplies. It also expects RBI rate hikes in October and December, but the exact impact is not stated.
What the reporting says
Kotak Securities said crude oil could trade near $145 a barrel in the physical market even if benchmark prices stay around $100, according to a publisher summary citing Anindya Banerjee. The note points to soaring VLCC shipping costs as the reason for the wider gap. It also says India may be protected by refining capacity and diversified supplies, while RBI rate hikes in October and December are expected. What is still unknown is the timing and scale of any move.
Why it matters
Kotak Securities’ Anindya Banerjee was quoted in a publisher summary saying physical crude prices could rise far above screen prices because VLCC shipping costs are climbing. The comment points to possible implications for India’s oil import costs, though the note says the country may be cushioned by refining capacity and diversified supplies. The same summary flags expected RBI hikes in October and December, but does not provide policy details or confirm the timing.