India’s Oil Giant Expands into Global Trading with New Crude and Fuel Unit

India’s largest oil producer, Oil and Natural Gas Corporation (ONGC), is planning to set up a crude and fuel trading unit to expand its global presence and increase revenue. The new unit will be responsible for trading crude oil and petroleum products, including diesel, gasoline, and jet fuel. This move is part of ONGC’s strategy to diversify its business and reduce its dependence on domestic sales. The company aims to increase its revenue from trading activities to 10% of its total revenue within the next two years. ONGC has already started hiring staff for the new unit and is in the process of setting up a trading desk in Singapore. The company plans to trade crude oil and petroleum products with other oil majors, including ExxonMobil, Royal Dutch Shell, and BP. ONGC’s entry into the global trading market is expected to increase competition and put pressure on existing traders. The company’s trading unit will be headed by a seasoned trader with experience in the oil industry. ONGC plans to use its existing infrastructure, including its refineries and pipelines, to support its trading activities. The company will also use its relationships with other oil producers and consumers to secure supplies and sales. ONGC’s expansion into trading is part of a larger strategy to increase its global presence and become a major player in the oil industry. The company has already made significant investments in overseas oil and gas fields and is planning to increase its production from these fields. ONGC’s trading unit will also help the company to hedge against price volatility and manage its risks. The company plans to use derivatives, including futures and options, to manage its price risks. ONGC’s entry into the global trading market is expected to have a significant impact on the oil industry, particularly in Asia. The company’s trading unit will be competing with other major oil traders, including Trafigura and Vitol. ONGC’s expansion into trading is also expected to create new opportunities for the company to increase its revenue and profitability. The company plans to use its trading unit to secure supplies of crude oil and petroleum products for its refineries and to sell its products to other consumers. ONGC’s trading unit will also help the company to increase its market share and become a major player in the global oil market. The company’s expansion into trading is part of a larger trend of oil producers expanding into trading and other downstream activities. Other oil producers, including Saudi Aramco and Abu Dhabi National Oil Company, have also set up trading units in recent years. ONGC’s entry into the global trading market is expected to increase competition and put pressure on existing traders. The company’s trading unit will be competing with other major oil traders, including Glencore and Gunvor. ONGC’s expansion into trading is also expected to create new opportunities for the company to increase its revenue and profitability.

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