India to get better oil trade bargains
In previous summits with oil-producing countries, India has been relatively passive.
At these summits, India would plead for more crude oil supplies, according to the head of East of Suez Oil at consultancy FGE, Sri Paravaikkarasu.
However, India is now stepping up its game in these bilateral meetings with oil-producing countries.
India is currently aiming to drive harder bargains with these countries.
This week, India is co-hosting the International Energy Forum with China and South Korea.
At this international conference, India is going to drive these bargains with global oil producers. This will allow India to leverage its strength as the third-biggest importer of crude oil in the world.
Key producers from the Organization of the Petroleum Exporting Countries (OPEC) are trying to secure a foothold in India.
They are being threatened from the rising oil output from new OPEC countries and countries that are not in OPEC.
In India, refining capacity is set to surge from 5 million barrels per day to 8 million barrels per day in 2030.
At the International Energy Forum, India is hoping to advance talks with Saudi Arabia and Nigeria for crude oil supplies, according to an official from the Indian oil ministry and two officials from Indian state-run energy firms.
Dharmendra Pradhan, the Minister of Petroleum and Natural Gas, said that the world recognizes the growing size and appetite of India’s market.
Pradhan says that they want the agreements to be fairer and more transparent than they were in the past. He also said that they want the suppliers to look at India more favorably.
Now, instead of pleading for crude oil supplies, India will ask for them directly.
Indian state oil executives also say that there is now a more balanced relationship between India and the suppliers.
India’s ties with the suppliers are now more collaborative, instead of being just buyer-seller relationships.
Thanks to this more direct approach that India is taking at the International Energy Forum, the country will be able to adequately supply the growing appetite of its energy market.
Image Reference: Hindustantimes