Tuesday, September 27, 2022

OPEC bypasses India’s call, Saudi Arabia recommends using stockpiled cheap oil

New Delhi: India calls for the removal of applicable controls on production through the Organization of Petroleum Exporting Countries (OPEC) and its allies. At the same time, crude oil prices on the international market have risen.

Saudi Arabia has told India that it can use the crude oil it bought when crude oil prices fell sharply last year. Brent crude oil, the most commonly used crude oil, rose nearly one percent on Friday to reach US$67.44 per barrel.

OPEC and its partner countries (known as OPEC Plus) agreed at the meeting that they should not increase crude oil production in April. These countries believe that they need to wait for stronger demand to improve.

This is an appeal

In fact, the oil minister Dharmendra Pradhan called on OPEC countries to reduce production restrictions in order to stabilize crude oil prices. He believes that the increase in crude oil prices on the international market has had a negative impact on the improvement of economic sectors and demand.

When asked about India’s persistence after the OPEC meeting, Saudi Arabia’s Minister of Energy, Prince Abdul Aziz bin Salman, said that India should use part of its crude oil reserves purchased last year at a lower price last year. .

India made a stockpile

Last year, when the price of crude oil on the international market was very low, India had purchased 10 million barrels of crude oil for 6.7 million barrels to fill its strategic reserves. The average price of the crude oil is $19 per barrel. Pradhan provided this information in a written response to a question from Rajya Sabha on September 21, 2020.

However, after the rise in crude oil prices in the international market, the country’s retail prices of gasoline and diesel have reached historical highs. If oil companies also pass on the latest increase in crude oil prices to customers, their retail prices will rise further.

Please also read:
Gasoline and diesel prices have risen, India remembers its commitment to keep oil prices stable, including OPEC

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Nation World News Desk
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