India pressures Opec for affordable oil prices

New Delhi: India asks oil cartel Opec on Thursday for “affordable” oil prices within “reasonable range” as domestic retail fuel prices jump to record highs due to rising international oil prices. Insisted that production cuts should be phased out.
Oil exporters such as Saudi Arabia have traditionally been India’s main source of oil. However, Opec and its allies, called Opec +, are ignoring calls for easing supply restraints and the world’s third-largest oil importer is using new sources to diversify its oil imports. I did.
As a result, Opec’s share of India’s oil imports fell from 74% last month to about 60% in May.
Oil Minister Dharmendra Pradun held a virtual dialogue with OPEC Secretary-General Mohammed Sanushi Balkind, reiterating concerns about oil prices in excess of $ 75 a barrel. This is the highest since April 2019.
Due to the surge, gasoline and diesel retail prices have risen to record highs. Gasoline exceeds 100 rupees per liter in nine states and UT, while diesel sells over 100 rupees per liter in Rajasthan and Orissa.
A statement released by OPEC after the meeting stated, “Minister Pradan emphasized the importance of affordable and regular energy supply to promote economic and social progress, and his country is a major consumer of oil and He said he was an importer. ”
A statement from the Ministry of Petroleum then said, “Pradan has expressed concern about rising oil prices and their impact on consumers, as well as a wise economic recovery. High oil prices are putting significant inflationary pressure on India. I emphasized that. ”
Both sides discussed issues of mutual interest, such as recent oil market trends, recovery trends in oil demand, economic growth forecasts, and overcoming energy challenges.
The ministry’s statement said, “Mr. Pradan reiterated his request to phase out production cuts, and crude oil prices would be in the collective interests of both consumers and producers, rationally promoting a consumption-led recovery. He emphasized that he should stay within the scope of the situation. ”
He also emphasized the need for all forms of energy to meet India’s growing energy demand.
“The Minister sees OPEC as an important energy partner and hopes that continued cooperation will continue, citing the growing cooperation between India and OPEC over the years,” said a statement from the Petroleum Cartel. There are. ”
He said the ongoing cooperation consisted of a high level of dialogue and cooperation at the technical level.
In March, Pradan and his Saudi counterparts were trapped in a verbal duel after OPEC + ignored India’s plea to facilitate production control.
Saudi Arabia’s energy minister, Prince Abdulaziz bin Salman, urged New Delhi to replace oil purchased at the bottom last year.
A few days later, Pradan called the statement “a non-diplomatic response from friendly nations.”
His ministry then asked refiners to look at sources outside the Middle East to buy oil.
As a result, imports from Saudi Arabia, India’s second-largest supplier after Iraq, fell by about a quarter year-on-year, and the United Arab Emirates fell from third to seventh in April. Another OPEC country, Nigeria, is currently the third supplier.
However, the second wave of Covid-19 infection led to a serious shortage of hospital beds and medical oxygen, and New Delhi called on Middle Eastern countries to procure medicines.
“The Minister (Pradan) also thanked OPEC member states, including the Kingdom of Saudi Arabia and the United Arab Emirates, for providing medical assistance during India’s recent surge in Covid-19,” the OPEC statement said. Stated.
OPEC said Balkind and Pradan had discussed trends in the oil market.
“The video conference was held as part of the (Opec) Secretariat’s regular consultation program and outreach activities with oil-consuming countries and other producers and industry stakeholders.
“This debate was part of a constructive relationship between Opec, one of the world’s largest oil consumers, and India,” he added.
The talks focused on “exchanging and considering issues such as global oil market conditions, new energy-related trends, global economic recovery prospects and other topics.”
In his remarks, Balkind emphasized improving the outlook for the global economy and the global oil market.
Opec’s June monthly oil market report predicts that the global economy will grow 5.5% in 2021 and oil demand will increase by 6 million barrels per day.
“The Secretary-General further emphasized the strategic role of the Declaration of Cooperation (DoC) in overcoming the two global oil cycle downturns of 2015 and 2016 and the latter recession of the 2020 Covid-19 pandemic. did.
“Participating countries have established solid mechanisms to help restore oil market stability, including monthly meetings to review market conditions,” he said.
The first high-level Opec-India Energy Dialogue was held in New Delhi in December 2015. The final and fourth dialogue in the series took place on November 5, 2020 through a video conference.
The next dialogue meeting will be held later this year.

India pressures Opec for affordable oil prices

Source link India pressures Opec for affordable oil prices

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