Article content
(Bloomberg) — India’s oil minister says the country isn’t concerned about OPEC+’s output cuts and Saudi Arabia’s recent decision not to expand production capacity.
“There is enough oil in the world and new suppliers are coming in,” Hardeep Singh Puri said on the sidelines of India Energy Week in Goa. “You decide, you want to sell it or you want to keep it in the ground.”
Article content
The world’s third-biggest oil importer behind China and the US, India is set to be the single largest source of global oil demand growth between now and 2030 thanks to a booming economy, growing middle class and youthful demographics, according to the International Energy Agency.
Article content
Read More: Global Oil Demand Growth to Hinge on India’s Path, IEA Says
India’s oil-buying spree comes as the Organization of Petroleum Exporting Countries and its allies including Russia are capping their production amid demand concerns. OPEC+ agreed to withhold roughly 2 million barrels of daily output in the first quarter to avert a glut. In addition, Saudi Aramco last month abandoned a plan to boost its oil output capacity to 13 million barrels a day by 2027, raising further questions about the kingdom’s view on future consumption.
“If the Saudis or anyone else say they don’t want to produce, I think they have the right to do it,” Puri said.
India has remained neutral in the West’s standoff with Russia amid the war in Ukraine, seeing it as an opportunity to buy discounted Russian barrels. As a result, Russia now accounts for some 30% of Indian crude imports, overtaking traditional suppliers like Iraq and Saudi Arabia.
Share this article in your social network