EXCLUSIVE India plans to import joint oil deals with importers

An employee rides a bicycle at the Barat Petroleum Corporation refinery in Mumbai April 24, 2008 REUTERS / Punit Paranjpe

NEW DELHI, October 19 (Reuters) – India is forming a government-led and private screening team.

India, the world’s third-largest oil importer and consumer, relies on about 85% of its imports and buys most of it from Middle Eastern producers.

The screening team first meets once a week to exchange ideas on secret purchases.

“The companies can create joint strategies and go as far as possible,” he told Reuters.

Indian state refineries negotiate some crude oil purchases.

To date, a joint agreement has resulted in a significant reduction in Iran’s oil supply, not just government control, but also private refineries.

In the wake of the worst energy crisis in India in recent years, local gasoline and oil prices have risen sharply, and the country wants to double its efforts to buy wisely.

India’s trade deficit reached $ 22.6 billion in September, the highest in 14 years, driven by imports. Read more

According to Kapor, the Organization of Petroleum Exporting Countries (OPEC) and its partners, known as OPEC +, should increase production to reduce oil prices.

“OPEC + should realize that this is not the right approach, they should speed up production. If demand is rising and you are not increasing production, you are trying to create a gap, ”he said.

As a result, prices are rising and this is not true.

OPEC + has agreed to increase its production by November to 400,000 barrels (bpd) a day, as it seeks to narrow its output by 5.8 million bpd. Read more

Kapor says rising oil prices will “make consumers more likely to start thinking about switching to other forms or reduce their demand for OPEC oil in some way.”

“These kinds of prices are not sustainable.”

India has spent billions of dollars on refineries, reducing OPEC crude oil production.

High oil prices are attracting investment to higher activity, which could lead to higher yields outside the Gulf, Kapor said.

Indian oil imports OPEC Indian oil revenues lower
The share of different regions in Indian oil importers The share of different regions in Indian oil importers

Reporting by Nidi Verma; Edited by Jason Nellie

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