India said it will accelerate its diversification of oil imports to hedge against any surprise production cuts by the Organization of the Petroleum Exporting Countries and its allies.
India’s Oil Minister Hardeep Singh Puri said on Friday, in reference to OPEC’s decision to cut production by 2 million barrels per day last week, “This will hurt big importers like India, which have closed on imports of petroleum products last year.” $120 billion was spent.” ,
As the world’s third largest consumer and importer of oil, India buys about 85% of its needs from abroad, while its energy demand is set to drive its economic expansion.
At GeoIndia 2022, Mr. Puri said, “Some diversification has already happened and we will bring more diversification. There are many sources and we will not hesitate to take action.”
He said a production cut could temporarily maximize revenue for OPEC producers, but could propel the world into recession.
“It is their (OPEC) sovereign right to decide. But it is also my job to state that all such actions have consequences, intent or intent,” Puri said.
Indian state fuel retailers have not raised pump prices since April and Mr Puri said the country would be able to navigate the terrain “with confidence”.
Mr Puri said Indian companies have signed new oil supply deals with Colombia and Brazil and are looking to buy stake in oil producing assets abroad.
Relations between the United States and Saudi Arabia, a traditional ally, are at a low point after OPEC said it would cut its production targets despite US objections.
India is also upset with Saudi Arabia for charging an Asian premium on oil supplies and last year Indian state refiners briefly cut oil imports from the kingdom after Saudi-led OPEC cut production.
“In the past we exercised significant autonomy as a consumer and as an importer. We would not hesitate to take advantage of the situation to use that autonomy in a way that ensures affordable and safe energy supply to our consumer population Can’t,” said Mr. Puri.
The share of Middle East and OPEC oil in India’s overall imports has been declining for some years now.
Mr. Puri also said that India’s oil imports from Russia are driven by sales exemptions. He said the discount on Russian oil has now reduced.