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High Crude and LNG Prices Weigh on India’s Oil and Gas Sector
oilprice.com · September 7, 2026 · Week 2026-37
Summary
The renewed rally in crude oil and LNG prices, coupled with higher freight costs and the impact of the Iran war on global trade flows, is pressuring India's oil and gas sector. Negative marketing margins for gasoline and diesel, alongside surging Asian spot LNG prices, are expected to lead to softer Indian LNG imports in September. This situation is exacerbated by reduced Middle East oil flows and high shipping risks in the Strait of Hormuz.
Strategic Implication
This situation highlights the significant impact of geopolitical events and commodity price volatility on global energy markets, with direct implications for MENA crude and LNG exporters due to altered trade flows and freight costs.