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Petroleum and natural gas minister Hardeep Singh Puri has urged the Organization of the Petroleum Exporting Countries (OPEC) to show sensitivity to oil consuming-nations and curb output cuts.
Taking to X, formerly Twitter, Puri said he discussed the global energy scenario during a meeting with OPEC secretary general Haitham Al Ghais on Tuesday.
“India imports about 60% of its crude oil worth $101 billion and other petroleum products from OPEC members. I highlighted how ensuring access to affordable energy is a must for social upliftment,” he said.
In another tweet, the minister said: “During pandemic, when crude oil prices crashed, the world came together to stabilize the prices to make it sustainable for the producers. Now, as the world is at cusp of economic recession and slowdown, oil producers need to show same sensitivity towards the consuming countries.”
Acknowledging that it is the sovereign right of oil-producing and exporting countries to decide on production capacity, the minister said that the decision is nevertheless subject to “the doctrine of consequences —intended and unintended”.
Puri’s comments come at a time when crude oil prices have been hovering over $90 per barrel as the OPEC+ grouping and its major members Saudi Arabia and Russia have steadily cut production to keep prices up.
Last month, Saudi Arabia decided to extend its voluntary oil production cut of 1 million barrels per day (bpd) till December 2023. Russia also voluntarily extended its decision to cut production by 300,000 bpd till the end of 2023. These cuts are over and above a reduction of 1.66 million bpd announced in April.
Brent prices have eased in the last two days after crossing the $97-per-barrel mark last week. On Tuesday, the December contract of Brent on the Intercontinental Exchange was trading at $90.68 per barrel, lower by 0.03% from its previous close.
Imports account for around 85% of India’s energy needs, which means any increase in international crude oil prices has the potential to severely impact inflation. India’s retail inflation is currently above the Reserve Bank of India’s (RBI) upper tolerance level of 6%. In August, the retail inflation eased 6.83%, from 7.44% in July.
The minister held the discussion during ADIPEC 2023 in Abu Dhabi.
In another session at the event, Puri on Tuesday said India’s energy demand will continue to provide fuel for future economic growth, as it is bound to grow exponentially.
