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India Raises Concerns Over Volatility in Global Oil Prices
India, the world’s third largest oil importer and consumer, has expressed its concerns about the volatility of global oil prices to major oil producers and organizations, according to Indian Oil Minister Hardeep Singh Puri.
The Indian government has been engaging in bilateral discussions with oil-producing countries, as well as with the Organization of the Petroleum Exporting Countries (OPEC) and other international bodies, to convey the country’s serious concerns about crude oil price volatility. India is advocating for responsible and reasonable pricing that benefits consumer countries.
OPEC and its allies, collectively known as OPEC+, have been implementing supply limits since late 2022 to stabilize the market. In June, they extended these supply curbs into 2024. Additionally, Saudi Arabia and Russia recently made extra commitments outside of the OPEC+ agreement to support crude prices.
As a result of these efforts to tighten supply, oil prices have experienced a rally, with Brent crude trading close to its January highs. Currently, Brent crude is priced at $87.32 a barrel, while West Texas Intermediate crude (WTI) stands at $84.03.
However, in India, high oil prices have impacted the profitability of government-controlled retailers. These retailers have not revised the pump prices of petrol and diesel since last year to protect customers and curb inflation. The three state-run refiner and fuel retailers in India, Indian Oil Corp, Bharat Petroleum Corp, and Hindustan Petroleum Corp, dominate the fuel retailing sector in the country.
India’s concerns over volatile oil prices highlight its efforts to ensure stability in the energy market and protect its economy from excessive price fluctuations.
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