Modi urges oil suppliers to review payment terms to give rupee relief

Indian Economy Trade Deficit Declines Oil Prices Soar

While most oil analysts have attributed the sharp rise of premium crude prices since April to over $80 a barrel at least in part to the loss of Iranian exports, the US special envoy for Iran, Brian Hook, told reporters in Paris on October 15 that the market is doing fine with less Iranian oil.

U.S. crude stockpiles are expected to have risen last week for the fourth straight week, by about 1.1 million barrels, according to a Reuters poll ahead of reports from the American Petroleum Institute (API) and the U.S. Department of Energy's Energy Information Administration (EIA).

During today's meeting, the emerging global energy scenario will be discussed.

This comes as fuel prices continue to rise across the four major metros, burning a hole in common man's pocket.

The roundtable came on a day diesel price rose for the 10th consecutive day to wipe out all of the Rs 2.50 per litre cut in rates announced earlier this month through excise duty cut and oil company subsidy.

Modi also asked chief executives why no new investments in oil and gas exploration and production are coming to the country despite the government implementing all the suggestions they made at the previous such meetings, sources said. More than a year later, the government allowed higher natural gas price for yet-to-be-produced fields in hard areas like deep sea.

Ironically, in the last few days oil prices have received strong support from allegations that Saudi agents killed journalist Jamal Khashoggi, creating tension between Washington and Riyadh, Tehran's arch-enemy in the Middle East.

Modi sought greater participation of private companies in the distribution of the gas sector. Senior Director at World Bank Riccardo Puliti also attended the meeting. The US administration has been pushing its allies to cut Iranian oil imports and encouraging Saudi Arabia, other OPEC states and Russian Federation to pump more oil to meet any shortfall.

During his interaction, the Prime Minister highlighted the significant positioning of India in the oil and gas market.

"Though there is enough production, the unique features of marketing in the oil sector have pushed up the oil prices". Import dependence has only increased since then and the government is now looking for ways to raise domestic output.

"The oil market is producer driven and both the quantity and prices are determined by the oil-producing countries".

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