Saudi Arabia gives assurances on supply after India expressed concerns
Saudi Arabia said on Thursday it would make sure the world is adequately supplied with oil to support global economic growth just as top consumer India expressed frustration with oil prices hitting $80 per barrel for the first time since 2014.
OPEC’s most influential energy minister, Saudi Arabia’s Khalid al Falih, called India’s Petroleum Minister Dharmendra Pradhan to assure him that supporting global economic growth was “one of the kingdom’s key goals”, the Saudi ministry said in a statement.
“He (Falih) reiterated his commitment towards market stability and that the Kingdom together with other producers will ensure availability of adequate supplies to offset any potential shortfalls,” the statement said.
The statement came as oil prices rose back to $80 per barrel for the first time since 2014 due to rising concerns over disruptions to Iranian oil exports because of new U.S. sanctions and due to plummeting output in Venezuela.
Both the Saudi and Indian ministries said Pradhan expressed concern about escalating prices and the impact it has on consumers and especially on the Indian economy, the world’s third largest oil consumer.
“I expressed my concern about rising prices of crude oil and its negative impact on consumers and the Indian economy and reiterated the need for stable and moderate crude oil prices,” Pradhan said in a statement.
India is one of the world’s fastest growing energy consumers and its oil use only lags behind the United States and China.
OPEC and its ally Russia have cut their output since January 2017 to help reduce excessive global stockpiles.
So far OPEC has said it saw no need to ease output restrictions despite global stocks falling to its desired levels and despite consuming nations voicing concerns the price rally might have gone too far and could lead to demand destruction.
U.S. President Donald Trump has also called on OPEC to help cool oil prices saying they were artificially high and that it was “unacceptable”.
Source: Reuters Md. Irfan Ansari The Kootneeti Middle East Team
The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of The Kootneeti Team