India’s third-largest oil importer is worried that Thursday’s OPEC + decision not to lift oil production in April could affect the recovery in consumer-driven oil demand, it said on Friday. Indian Oil Minister Dharmendra Pradhan for Reuters.
“As one of the largest crude oil-consuming countries, India is concerned that such actions by producer countries have the potential to undermine consumer-led recovery and, in particular, to hurt consumers, especially in our sensitive market. prices, “Pradhan told Reuters.
On Thursday, the OPEC + group surprised the market by deciding not to lift collective crude oil production in April, leaving only small exemptions for Russia and Kazakhstan, as it did in its January meeting.
So, from April, the alliance will not only keep production unchanged – except for Russia’s increase in production by 130,000 bpd and Kazakhstan by 20,000 bpd – but Saudi Arabia will also keep an extra million bpd cut in April, further tightening the market. .
OPEC + ‘s surprise move pushed oil prices up 5%, with Brent approaching $ 68 and WTI Crude well above $ 64 a barrel.
India, which is dependent on imports for about 80% of its oil consumption, has been concerned about higher oil prices in recent weeks, which have led to rising oil import bills and domestic inflation.
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Earlier this week, India again called on the OPEC + group to boost production, saying it did not support “artificial cuts to keep the price up”.
While oil prices have risen to their highest level in 13 months, India has been turning to OPEC + since January to consider the effects of higher oil prices on consumption in recovering economies.
During last year’s drop in oil prices, India exceeded its strategic oil reserves by $ 19 a barrel, saving nearly $ 700 million in the process, the Ministry of Petroleum and Natural Gas said in September 2020. India.
Oil above $ 60 is certainly painful for India’s import bills and for consumers and could undermine the recovery of one of the world’s most important oil demand markets.
By Tsvetana Paraskova for Oilprice.com
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