India, the world’s third-largest importer of crude oil, is urging oil-producing nations and major consumers to engage in discussions aimed at stabilizing oil prices, Indian Oil Minister Hardeep Singh Puri said on Monday.
With over 80% of its oil needs met through imports, India has been seeking lower crude prices in recent years amidst global market volatility.
A key factor behind this push for lower prices is India’s increasing reliance on Russian oil. As Western nations have sanctioned or avoided Russian crude, India has significantly increased its imports from Russia, making it the country’s largest supplier. Russia now leads in oil sales to India, far outpacing Iraq and Saudi Arabia, which are the second- and third-largest suppliers.
At the ADIPEC energy conference in Abu Dhabi, Minister Puri emphasized that large oil consumers, including India, need more stability and predictability in oil prices.
“I hope that all parties involved will recognize the need for a realistic price,” Puri said in an interview with Reuters. “It is not as if production is being cut drastically. We need a balanced approach where both producers and consumers can come together to discuss and find common ground.”
Meanwhile, OPEC+ producers, who have been voluntarily cutting production, announced on Sunday that they will delay planned output increases by one month, now set to start in January 2025 instead of December 2024. The news led to a sharp 3% spike in oil prices on Monday, with WTI Crude rising above $70 per barrel after dipping below that threshold just days earlier.
Despite concerns over price fluctuations, Minister Puri stressed that there is no global oil shortage. He pointed to new entrants in the market and increased production from established producers.
“We need stability and predictability in the market,” he concluded, emphasizing the importance of a stable pricing environment for consumers and producers alike.
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