Oil Minister Asks Saudi Arabia for Stable, Moderate Oil Prices

With global crude prices touching $80 a barrel, Oil Minister Mr. Dharmendra Pradhan has pressed OPEC kingpin Saudi Arabia to keep prices stable and moderate, saying that spike in rates would have a negative impact on Indian consumers as well as the economy.

Mr. Pradhan conveyed India’s concerns when Saudi Arabian Minister of Energy, Industry and Mineral Resources Mr. Khalid Al-Falih called him recently “to discuss continued joint cooperation between the two countries and in particular the current oil market situation”, an official statement said.

The crude oil price rally is being attributed to a combination of factors – renewed US sanctions on third-largest OPEC producer, shrinking supplies from Venezuela and the International Energy Agency saying that a global surplus has finally been eliminated due to output cuts by the Organization of Petroleum Exporting Countries and its allies.

Mr. Al-Falih assured Mr. Pradhan that supporting global economic growth is one of Saudi Arabia’s key goals. “He reiterated his commitment towards stable supplies and that the Kingdom together with other producers will ensure availability of adequate supplies to offset any potential shortfalls and ensure that prices remain reasonable,” the statement added.

The rally in international oil prices and a weakening rupee against the US dollar has led to a spike in domestic retail prices of petrol and diesel.

The Saudi Minister updated Mr. Pradhan on his ongoing consultations with colleagues from major producing countries both inside and outside of OPEC, the statement said.