VARANASI: Oil minister Hardeep (*30*) Puri on Sunday cautioned the OPEC+ grouping of oil exporting nations to watch out for market turbulence at their forthcoming assembly to talk about manufacturing plan, saying excessive costs due to the uncertainties will lead to a drop in demand.
“It is their legitimate right… whatever they want to produce, not produce, or sell.But be very careful. If we reach a situation where turbulence leads to very high prices, then demand will fall,” Puri informed TOI after launchingGAIL’s second floating CNG refuelling facility for boats in Varanasi.
In the context of prolonged manufacturing cuts by OPEC+ grouping being held accountable for oil market volatility, Puri’s remarks could be interpreted as a warning bell on lack of market — particularly amid shifting route of power circulate within the aftermath of Russia’s invasion of Ukraine.
On expectations from the grouping’s assembly scheduled for November 30, Puri declined to remark saying he was conscious that it was postponed final week. “Let’s see what happens. But we are fully prepared (to deal with the grouping’s decision)”.
Puri had put throughout these views at the sixth assembly of the Indian-OPEC Energy Dialogue in November. Leveraging India’s place because the world’s third-largest oil guzzler, Puri spoke for the patrons, arguing {that a} secure market advantages each producers and shoppers.
“I took the opportunity to tell my friend (OPEC secretary-general Haitham Al Ghais) — and we work very closely — that high prices will impact global economy and oil demand. I think they understood the message,” Puri stated.
Analysts count on OPEC+ to talk about an additional minimize in manufacturing to prop up costs, which dropped beneath $80 per barrel after the assembly was pushed again from November 26. Benchmark Brent slid to $79 per barrel from this yr’s excessive of practically seen $98 in September on demand issues and a potential surplus subsequent yr.
High oil costs are a priority for India because it meets greater than 80% requirement via imports. High costs elevate inflationary stress, which prompted the federal government to subsidise cooking gasoline and power state-run oil corporations to soak up a part of the impression by freezing petrol and diesel charges to ease inflationary stress on shoppers.
According to the OPEC World Oil Outlook 2023, India can be the quickest rising main creating financial system, averaging long-term development of 6.1% between 2022-2045 and can account for over 28% of incremental world power demand throughout the identical interval.
“It is their legitimate right… whatever they want to produce, not produce, or sell.But be very careful. If we reach a situation where turbulence leads to very high prices, then demand will fall,” Puri informed TOI after launchingGAIL’s second floating CNG refuelling facility for boats in Varanasi.
In the context of prolonged manufacturing cuts by OPEC+ grouping being held accountable for oil market volatility, Puri’s remarks could be interpreted as a warning bell on lack of market — particularly amid shifting route of power circulate within the aftermath of Russia’s invasion of Ukraine.
On expectations from the grouping’s assembly scheduled for November 30, Puri declined to remark saying he was conscious that it was postponed final week. “Let’s see what happens. But we are fully prepared (to deal with the grouping’s decision)”.
Puri had put throughout these views at the sixth assembly of the Indian-OPEC Energy Dialogue in November. Leveraging India’s place because the world’s third-largest oil guzzler, Puri spoke for the patrons, arguing {that a} secure market advantages each producers and shoppers.
“I took the opportunity to tell my friend (OPEC secretary-general Haitham Al Ghais) — and we work very closely — that high prices will impact global economy and oil demand. I think they understood the message,” Puri stated.
Analysts count on OPEC+ to talk about an additional minimize in manufacturing to prop up costs, which dropped beneath $80 per barrel after the assembly was pushed again from November 26. Benchmark Brent slid to $79 per barrel from this yr’s excessive of practically seen $98 in September on demand issues and a potential surplus subsequent yr.
High oil costs are a priority for India because it meets greater than 80% requirement via imports. High costs elevate inflationary stress, which prompted the federal government to subsidise cooking gasoline and power state-run oil corporations to soak up a part of the impression by freezing petrol and diesel charges to ease inflationary stress on shoppers.
According to the OPEC World Oil Outlook 2023, India can be the quickest rising main creating financial system, averaging long-term development of 6.1% between 2022-2045 and can account for over 28% of incremental world power demand throughout the identical interval.
