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If left unchecked, crude oil prices will hit global economic recovery: Puri
It’s a win-win only if the price matrix takes care of the requirement of consumers and producers, Puri said.
Crude oil prices, if not maintained at sustainable levels, will severely impact the green shoots of global economic recovery, Union petroleum minister Hardeep Singh Puri said on Friday.
It’s a win-win only if the price matrix takes care of the requirement of consumers and producers, he added.
The minister was speaking at the Fifth India Energy Forum by CERAWeek when he made the remark.
“Union minister for petroleum and natural gas Hardeep Singh Puri today said that unless the prices of crude oil are maintained at sustainable levels, it will severely impact the green shoots of global economic recovery. In his closing remarks at India Energy Forum by CERAweek, referring to the latest commodity markets outlook by World Bank, the minister said that the cost of energy should not be allowed to outstrip the paying capacity of consuming nations. This imperative needs to be configured by the consuming countries in planning their production profiles for future,” a statement by the ministry said.
The minister’s remark came at a time the producers’ cartel – the Organisation of the Petroleum Exporting Countries and its allies (together known as OPEC+) – have been resorting to supply squeeze for keeping oil prices artificially high.
International crude prices are at multi-year high as producers have restricted supply even amid an increased demand due to rapid economic recoveries from the Covid-19 pandemic. Other immediate factors include low US inventories and shortage of coal in major economies such as China and India.
Benchmark Brent crude, which soared to a three-year high at $86.1 a barrel during the trading session on Thursday, continued to remain firm, hovering above $85 on Friday.
India, which imports 85% of crude oil it processes, has been witnessing an unprecedented spike in petrol and diesel rates. Currently, petrol is sold at ₹106.89 and diesel at ₹95.62 in Delhi.
