Foreign, Oil & Gas
India, the world’s third-biggest oil consumer has expressed concern over rising crude oil prices, which made access to energy and affordability difficult for developing countries.
The Minister of Petroleum, Natural Gas and Skills Development and Entrepreneurship, India, Mr Dharmendra Pradhan said this on Wednesday at the on-going 7th OPEC international seminar on Wednesday in Vienna, Austria.
Pradhan said the rising crude prices, with Brent Crude Oil going for 75.08 dollars per barrel as at June 19, had gone above the sustainability threshold of the world and was causing undue hardship for developing economies.
“India favours reasonable and balanced pricing which do not undermine its development process.
“We do not seek low values of 30 dollars per barrel nor do we support the prevailing high prices which give a dent to our fiscal balance.
“For the world to grow as a whole, mutually supportive relationship between producers and consumers needs to be encouraged.
“It is in the interest of the producers that other economies keep growing steadily to ensure growing energy markets for themselves,” he said.
Meanwhile, the Iranian Minister of Petroleum, Mr Bijan Zangeneh has called on OPEC and non-OPEC countries to sustain the current agreement to cut back oil production to stabilise prices.
Zangeneh said the primary reason for the current increase in oil price was political and therefore breaking the oil production cut deal would not be the solution.
He said since May 8 when President Donald Trump announced US withdrawal from an international nuclear deal with Iran, oil prices went up around six dollars per barrel.
“In recent days, the United States President blamed the OPEC for the hike in oil price.
“In its life time, especially in recent years, OPEC has defended reasonable prices for oil and has never supported unreasonably high price.
“Indeed the real reason for the current high price lies with the United States President himself. You cannot have your cake and eat it too.
“You cannot impose unilateral trade sanctions against a founding member of OPEC and a major oil producer and at the same time expect the oil market not to show adverse reaction.
“The reason behind the high oil price is not in the lack of balance between demand and supply.
“On the contrary, political tension created by the United States of America has given rise to market instability and uncertainty,” he said.
The Group Executive, BP, Mr Bob Dudley advised the OPEC and non-OPEC countries to continue to work together for the growth of the industry.
“I do think that the world is much healthier with the agreements that keep the oil prices within a certain frameworks.
“I think that high prices is very difficult for countries like India and low prices is also very difficult for Iran for example.
“So coming out of this, it will be good to see a situation where OPEC and non-OPEC countries can keep it within a range that is fair for both countries,” he said.
Also, Mr Scott Sheffield, The Executive Chairman, Board of Pioneer Natural Resources, reminded the OPEC and non-OPEC members of the threat posed by shale oil producers.
He said the US shale oil production had grown from about 5 million barrels to almost 11 million barrels per day in the last four months.
“I’m a firm believer that the US will reach about 15 million barrels a day, over the next several years.
“If OPEC doesn’t do something I think we’ll see oil prices at 100 dollars plus. I think that a band between 60 to 80 dollars per barrel is a good band.
“Crude oil at a price of 100 dollars per barrel isn’t going to help OPEC and it won’t help us in west Texas. Rather, It will hurt demand and investment,” he said. (NAN)
– Jun. 20, 2018 @ 15:12 GMT |
Tags: India the world’s third-biggest oil consumer has expressed concern over rising crude oil prices which made access to energy and affordability difficult
