IOC says OPEC output cut won’t hit imports | business-news | Hindustan Times
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IOC says OPEC output cut won’t hit imports

OPEC) members decided in Vienna to extend cuts in oil output by nine months to March 2018, which may help oil prices to stay above $50 a barrel this year and bolster government finances.

business Updated: May 26, 2017 17:26 IST
Suchetana Ray
IOC logo outside the state-owned oil retailer’s office.
IOC logo outside the state-owned oil retailer’s office.(Reuters photo)

Indian Oil Corp expects no impact of the extension of OPEC’s output cuts till March 2018 on its imports, chairman B Ashok said on Thursday.

On Thursday, the Organization of the Petroleum Exporting Countries (OPEC) members decided in Vienna to extend cuts in oil output by nine months to March 2018, which may help oil prices to stay above $50 a barrel this year and bolster government finances.

“We haven’t had any impact of the OPEC production cut. We are confident that the extension of the production cut will not impact our procurements,” Ashok said.

“There should be reasonable pricing which the consumer can bear.”

The sharp fall in oil prices in 2014 forced Russia and Saudi Arabia to plan a freeze in output while it led to political unrest countries including Venezuela and Nigeria.

The sharp rise in the US shale gas pushed up global crude stocks to record highs and kept prices subdued.

In December 2016, OPEC and non-OPEC members agreed to cut output by about 1.8 million barrels per day during the first half of 2017, which amounts to 2% of global production.