India highlights need for stable oil prices in talks with OPEC

Petroleum Minister Hardeep Singh Puri emphasised the importance of market stability and affordability in the oil market during a telephonic conversation with OPEC Secretary General Haitham Al-Ghais on Friday.

The discussion in the 30-minute conversation covered recent trends and volatility in the global oil markets and their implications for international energy stability.

As one of the world’s fastest-growing economies, India is committed to supporting efforts to achieve balance in global energy markets, Puri said during the conversation.

India is the second-largest export destination for OPEC. During the financial year 2022-23, India imported crude oil, LPG, LNG, and petroleum products worth $120 billion from OPEC countries.

Oil prices surged by $3 a barrel in the international market on Friday amid reports of Israel launching a missile attack against Iran, raising fears of escalating geopolitical tensions that could disrupt crude shipments.

The benchmark Brent crude price rose to around $90 a barrel US West Texas hovered at around $85 a barrel.

The price of Brent crude had fallen to around $87 per barrel on Wednesday following higher US inventories and the decline in Chinese demand due to a slowing economy.

Since India imports over 85 per cent of its crude oil requirement, a sharp increase in global oil prices could lead to an increase in the country’s oil import bill and weaken the rupee due to the larger outgo of foreign exchange.