You are here: Home » Economy & Policy » News
Business Standard

Oil producers cannot hold consumers to ransom, says Hardeep Singh Puri

Puri blamed the key producers for keeping supplies lower than demand

Topics
Hardeep Singh Puri | Oil production | Crude Oil Price

Reuters  |  NEW DELHI 

Hardeep Singh Puri
File Photo: PIB India

By Nidhi Verma

NEW DELHI (Reuters) - India said on Friday that oil producing countries cannot hold consumers to ransom, underlining the nation's growing frustration with OPEC+ for not raising production to cool prices.

India, the world's third-biggest oil importer and consumer, imports about 85% of its oil needs and has been hit hard by rising oil prices. Oil prices eased on Friday, however, on concerns about a new COVID-19 variant detected in South Africa. [O/R]

"The producing countries cannot hold the consuming countries to ransom for a variety of reasons. We will make transition and we will do our production and in the short-term we will also deal with it may be by re-orienting our own priorities," India's oil minister, Hardeep Singh Puri, said at an industry awards event.

The nation has repeatedly urged OPEC+, which consists of countries belonging to the Organization of the Petroleum Exporting Countries and allies including Russia, to raise output to calm prices.

Ahead of the OPEC+ meeting next week to set output policy, Puri blamed the key producers for keeping supplies lower than demand.

Oil prices are determined by Saudi Arabia, UAE and Russia as part of OPEC+, Puri said in a separate event hosted by Republic TV.

"They have kept the supply curve below demand. They are saying that it's temporary for one to two months, after that there will be more supply available than demand," Puri said in Hindi at the Indian Economic Summit hosted by Republic TV.

He said India will continue to be a major driver of global energy demand for the next 20 to 30 years despite planned steps to move closer to green energy.

"We have told the producing countries if you don't exercise caution you will be in a situation where your desire to maximise profit in the short run will undermine the global economic recovery," he said. "If global economic recovery gets undermined, then to whom do you sell the oil?"

India, along with other major oil consumers China, Japan, South Korea and the United States, on Tuesday announced plans to release oil from strategic reserves in an attempt to cool prices.

"Release of strategic oil, whether that is symbolic or real, I don't know, but it is a very bold move," Puri said.

 

(Reporting by Nidhi Verma in New Delhi; Editing by Matthew Lewis)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, November 26 2021. 22:47 IST
RECOMMENDED FOR YOU
.