June 18, 2024
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OIL & GAS

OPEC+ Production Cuts, Not a Concern For India

India’s oil minister, Hardeep Singh Puri, has said that his country, which is the third largest oil importer after China and US is relaxed about OPEC+’s production cuts and Saudi Arabia’s recent decision not to expand production capacity.

On the sidelines of India Energy Week in Goa, the minister, stated that there is enough oil in the world and new suppliers are coming in, you decide, you want to sell it or you want to keep it in the ground.”

“If the Saudis or anyone else say they don’t want to produce, I think they have the right to do it,” the minister added.

Puri’s comments, show less concern towards OPEC+ cuts than New Delhi has shown in the past. India, had in 2021, entered a rift with OPEC+, when it repeatedly urged the alliance to bolster production and complained during a public conference that OPEC+ policy was “creating confusion for the consuming countries.”

The country, is set to be the single largest source of global oil demand growth between now and 2030. Credit to its booming economy, growing middle class and youthful demographics, according to the International Energy Agency.

India’s oil-buying spree comes as OPEC and its allies, including Russia, are capping their production amid demand concerns. OPEC+ agreed to withhold roughly 2 MMbpd in the first quarter to avert a glut. In addition, Saudi Aramco last month pulled back on a plan to boost its oil production capacity to 13 MMbpd by 2027, raising further questions about the kingdom’s view on future consumption.

 

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