India calls on OPEC to continue to keep stability in oil market 

India called upon the Organization of the Petroleum Exporting Countries to continue maintaining and ensuring stability in the oil market for the benefits of consumers, producers, and the global economy.

“As India remains on a trajectory of stable and robust economic growth, fostering deeper collaboration for the mutual benefit of both parties has the potential to contribute significantly to the long-term prosperity and stability of the global oil markets,” Oil Minister Hardeep Singh Puri said at the 6th OPEC-India Energy Dialogue at Vienna, Austria.

India is the third-largest energy consumer and crude oil importer after China and the US.

The World Oil Outlook 2023 had forecast India’s oil demand at 28% of incremental global energy demand in the period 2022-2045 and has also said that India will be the fastest growing major developing economy averaging a long-term growth of 6.1% in the mentioned period.

“The relationship between India and OPEC will be pivotal in the years to come, as the world seeks to foster global energy security, deliver energy affordability and reduce emissions,” said HE Al Ghais, Secretary General of OPEC.

The two parties also agreed to hold the next OPEC-India Energy Dialogue scheduled in 2024 in India.

Crude prices went up in the beginning of October after the conflict broke out in Israel, fuelling concerns of a disruption in global oil supply in addition to the voluntary cuts by Russia, Saudi Arabia, and the OPEC. Even though crude prices seem to be moderated now, oil markets need to remain cautious for any unprecedent occurrence that may again cause prices to rise.

Currently, Brent is being traded at $80 per barrel on the Intercontinental Exchange.

India’s demand for oil products increased by 80,000 barrel per day in the month of October due to increased mobility and consumption during the festive season, S&P Global said in its latest report. On a yearly basis, total demand grew by 4% or 197,000 barrels per day on the back of strong economy fundamentals.

Moreover, India’s overall oil demand is expected to grow by 258,000 barrel a day in 2023, higher than earlier revised 9,000 bpd because of increasing sales of diesel. “Middle distillates, gasoil, and kerosene/jet fuel combined will account for more than 50% of the growth, with gasoline and naphtha together to contribute 27% of the growth,” S&P Global said. The country’s oil demand is expected to grow by 11% in 2024.