Reliance forecasts healthy oil demand on the back of steady economic growth

Reliance Industries Limited predicts in its fiscal 2023 annual report that oil demand is expected to remain healthy thanks to steady economic growth.
The company said new supply from upcoming refining capacity in the Middle East, China and Africa will keep the market in balance. “Oil prices and commodity cracks will remain stable as global trade realigns in the wake of the Russia-Ukraine conflict. The easing of China’s Zero Covid policy will boost Chinese demand,” he said. .
Reliance said in its annual report that trade flows are expected to improve as supply chain disruptions ease. “Domestic demand for polymers is expected to be strong, driven primarily by growth in the e-commerce, packaging, durable goods, automotive and infrastructure sectors. The company said strong demand will continue for the pipeline sector supported by infrastructure projects. In a media call after the July 21 results, Reliance said voluntary oil production cuts by the Organization of the Petroleum Exporting Countries and its allies, or OPEC+, could cause crude prices to fall in high and has an impact on demand.
V Srikanth, chief financial officer of RIL, said that going forward, high inflation, reduced global demand and increased supply from China could affect the company’s downstream exports to the US and ‘Europe’.
“Overall, from a risk factor perspective, voluntary oil production cuts by OPEC+ countries could keep crude prices high and impact demand. Other factors affecting demand could be higher inflation, higher supply from China, etc. These things could affect our exports to the US and Europe,” he said on the media call. Reliance’s current refining capacity is 1.4 MMBPD (million barrels). everyday).
“Our O2C business is transforming. From moving to renewable energy sources and new energy technologies to promoting the circular economy concept, especially for our petrochemicals Sustainable business techniques are rapidly gaining momentum,” President Mukesh Ambani said in the annual report. In its annual report, the company said natural gas is expected to play a major role as a transition fuel and that the share of gas in the energy mix is ​​expected to increase from 6% to 15% by 2030.
The company says its deepwater production mines are expected to produce nearly 30% of India’s domestic production.
Production from Reliance’s MJ field begins in the first quarter of fiscal year 2023-24. KG D6 gas will account for about 30% of India’s domestic gas production with a maximum capacity of 30 MMSCMD and serve key sectors such as CGD, power, fertilizer, oil refining, steel, glass and ceramics. .
Reliance Industries, the nation’s largest company by market capitalization, will hold its 46th annual general meeting of shareholders (AGM) on August 28, according to a regulatory filing obtained by the company. filed on August 4.