InvestorQ : Why has the Indian government expressed disappointment at the OPEC decision not to increase supplies of crude oil?
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Why has the Indian government expressed disappointment at the OPEC decision not to increase supplies of crude oil?

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sarah Leo answered.
8 months ago
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India has expressed its disappointment with the OPEC decision not to increase supply of crude in the global oil market. Dharmenda Pradhan stated that India was saddened by the decision of the OPEC+ to continue cutting production, although, the OPEC members do not appear to be too bothered. In fact, the larger crude supplier in the Middle East, Saudi Arabia, has asked India to rely on old stocks of oil bought earlier in the previous year.

Ahead of the OPEC decision, Pradhan had asked the OPEC to refrain from cutting supplies or holding supplies and instead to push up production aggressively. Oil prices in the Brent Crude market have nearly doubled in the last four months from $36/bbl to $69/bbl and that has had a major impact on the trade deficit with the current account also likely to slip into the negative territory.

The supply cut continue with curbs only by specific nations even as Russia and Kazakhstan are increasing production of crude oil. In a subtle and cryptic message, the Indian oil minister has asked the gulf nations to cooperate in keeping the price of oil lower. However, Saudi Arabia and the OPEC are not liking the idea too much. Pradhan even suggested that India may look for alternatives to fossil fuel in the Indian context.

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