Highlighting the rise in crude oil prices due to production cuts by major oil producers and its adverse impact on major oil consuming nations, Petroleum Minister Hardeep Singh Puri on Tuesday urged oil producers’ cartel OPEC (Organization of the Petroleum Exporting Countries) to “imbue a sense of pragmatism, balance and affordability in the oil markets”. According to an official statement, Puri held talks with OPEC Secretary General Haitham Al-Ghais in Abu Dhabi and called for “balancing global energy markets by ensuring that crude oil prices do not outstrip the paying ability of the consuming countries”.
India is the world’s third-largest consumer of crude oil and depends on imports to meet over 85 per cent of its requirement. Given the country’s extremely high import dependency, India’s economy is sensitive to oil price volatility. Apart from inflationary pressures, high oil prices could have implications for India’s trade balance, foreign exchange reserves, the rupee, and the overall health of the economy.
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