India and China in collaboration for an ‘Oil Buyers’ club

Reports say that the two Asian giants have nearly reached a deal to set up the club through which they will reduce OPEC’s sway, both over the global oil market and over prices.

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India and China in collaboration for an ‘Oil Buyers’ club

HIGHLIGHTS:

India and China are in talks to create an oil buyers’ club to be able to negotiate better prices with oil exporting countries.  

In June 2018, the Petroleum Ministry had said India is in discussions with China to cut dominance of the oil block.

India’s Petroleum Minister Dharmendra Pradhan had shared New Delhi’s concerns that the rallying oil prices are hurting its economy.

Pradhan urged the OPEC ambassadors to reconsider these discriminatory measures in the overall interest of all the countries and work together for a sustainable future.


With the US pressurizing India and China to stop buying Iranian oil, the two countries have an ‘oil buyers’ club’ up their sleeve to tackle the impending issue. India and China are in talks to create an oil buyers’ club to be able to negotiate better prices with oil exporting countries.

Reports say that the two Asian giants have nearly reached a deal to set up the club, through which they will reduce OPEC’s sway, both over the global oil market and over prices.

In June 2018, the Petroleum Ministry had said India is in discussions with China and looking at the possibility of forming an oil buyers’ club that can negotiate better terms with sellers as well as getting more US crude oil to cut dominance of the oil block.

In a phone conversation with Saudi Arabia’s Energy Minister Khalid al-Falih, India’s Petroleum Minister Dharmendra Pradhan had shared New Delhi’s concerns that the rallying oil prices are hurting its economy. Pradhan reiterated the need for ‘stable and moderate’ prices. He also discussed with ambassadors of OPEC countries about India’s growing position in the world energy demand and the need for responsible pricing which balances the interests of both the producer and consumer countries.

Pradhan urged the OPEC ambassadors to reconsider these discriminatory measures in the overall interest of all the countries and work together for a sustainable future.

India has also engaged with other producers to ensure that Iran’s blacklisting doesn’t leave a gaping hole to it’s the oil market.

Summary
Article Name
India and China in collaboration for an ‘Oil Buyers’ club
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Reports say that the two Asian giants have nearly reached a deal to set up the club through which they will reduce OPEC’s sway, both over the global oil market and over prices.
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The Policy Times