Oil and gas minister meets OPEC ambassadors

The Minister of Petroleum and Natural Gas, Dharmendra Pradhan, met with ambassadors from Organization of the Petroleum Exporting Countries (OPEC) countries to India on June 14; The meeting comes as global crude oil prices reached the highest since mid-2014

June 15, 2018

OPEC accounted for about 83 per cent of India’s total crude oil imports, 98 per cent of liquefied petroleum gas (LPG) imports and 74 per cent of our liquefied natural gas (LNG) imports during the last financial year

Minister Pradhan expressed concern about rising crude oil prices and its negative impact on consumers across the world, particularly in India; Crude prices have gone beyond sustaining the world’s rising consumption

The meeting preceded Mr Pradhan’s to visit Vienna over June 20-21 to participate in the 7th OPEC International Seminar to further discuss these key issues with OPEC Secretary General and OPEC member countries

In May 2018, OPEC’s daily crude oil production rose by 35,000 barrels, to average 31.9 million barrels - a third of global output. The 14 member states of OPEC hold 81.5 per cent of the world’s proven oil reserves

India’s Petroleum and Natural Gas Minister, Dharmendra Pradhan, met up with ambassadors from the Organization of the Petroleum Exporting Countries (OPEC) member states to India on June 14th. The meeting coincides with a spike in India’s fuel import along amid a rise in global crude oil prices to the highest since mid-2014. India shares a strong relation with OPEC countries that make up the top eight suppliers of crude oil for domestic consumption. The intergovernmental body accounted for about 83 per cent of India’s total crude oil imports, 98 per cent of liquefied petroleum gas (LPG) imports and 74 per cent of our liquefied natural gas (LNG) imports during the last financial year. For the world’s third largest oil market, a steady relationship with OPEC is critical to meet the nation’s growing fuel demand.

At the the meeting, Minister Pradhan expressed concern about rising crude oil prices and its negative impact on consumers across the world, particularly in India. He emphasized that globally crude prices have gone beyond the threshold that can be sustained by the world’s rising consumption. Mr Pradhan highlighted that market fundamentals do not support such high prices. He urged the OPEC Ambassadors to convey the message to their respective Governments regarding the need to move to responsible pricing, one that balances the interests of both the producer and consumer. India also reiterated the issue of discriminatory pricing through measures such as Asian Premium, an additional charge levied by OPEC sellers on Asian buyers. India urged a move to transparent and flexible markets for oil and gas.

The ambassador meeting preceded Mr Pradhan’s to visit Vienna over June 20-21 to participate in the 7th OPEC International Seminar to further discuss these key issues with Sanusi Barkindo, Secretary General of OPEC, as well as ministers from OPEC member countries. In May 2018, OPEC group’s daily crude oil production increased by 35,000 barrels, to average 31.9 million barrels – around a third of global output. The 14 member states of OPEC hold 81.5 per cent of the world’s proven oil reserves, or 1.2 trillion barrels, the majority of which is in West Asia. OPEC member states have made significant additions to their oil reserves in recent years, by adopting best industry practices, realizing intensive explorations and enhanced recoveries. Hence. India’s relationship with the block will only strengthen in the future.