Why it's IMPORTANT crude oil prices remain within REASONABLE band? Check what Petroleum Minister Dharmendra Pradhan URGED OPEC - all details here

In a high-level meeting on Thursday with Dr. Mohammed Sanusi Barkindo, Secretary General, Organisation of Petroleum Exporting Countries ( OPEC), Union Minister of Petroleum and Natural Gas and Steel Dharmendra Pradhan flagged his concerns over the increasing crude oil prices and its impact on consumers as well as on smart economic recovery. He further added that the prices of crude oil is adding significant inflationary pressure on India.

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According to an ANI report, the Union Minister of Petroleum and Natural Gas has urged OPEC to phase out production cuts soon and maintain prices of crude oil at a reasonable level, much lower than the current price of $75 per barrel.

According to the Minsitry of Petroleum and Natural Gas, both the sides discussed recent oil market developments, trends in oil demand recoveries, economic growth forecasts and overcoming energy challenges among other issues of mutual interest. The Union Petroleum Minister emphasised on the fact that crude prices should remain within a reasonable band which will be in the collective interests of both consumers and producers and will encourage a consumption-led recovery.

The ANI report stated that the minister said that OPEC countries as a group are the largest source of hydrocarbons for India. The OPEC companies have been honouring this long-term contract despite the volatility in supply since April 2020.

It must be noted that during the last financial year, India imported 71 per cent crude oil, 58 per cent LPG, 32 per cent LNG and 45 per cent petroleum products requirement from OPEC countries.

In the course of the meeting, Pradhan expressed his deep appreciation for OPEC and the support extended by its key countries like Saudi Arabia and the UAE, for their support to India during the second wave of the COVID-19 pandemic, especially with supplies of medicines, ISO containers, LMO and vital petroleum products.

India has been expanding technical cooperation, exchange of experts and other collaborations with OPEC since the first High-Level OPEC-India Energy.