INSUBCONTINENT EXCLUSIVE:
Government is preparing to establish a group of refiners for seeking much better crude dealsIndia is forming a group that brings together
state-run and personal refiners to seek better crude import offers, Petroleum Secretary Tarun Kapoor stated on Tuesday, as the nation
grapples with skyrocketing oil prices.The world's third biggest oil importer and customer, India depends on imports for about 85 percent of
its crude and purchases most of it from Middle East producers.Initially the group of refiners will meet when in a fortnight and exchange
concepts on crude purchases
The companies can form joint methods and they can even opt for joint negotiations wherever possible, Mr Kapoor informed Reuters.State
refiners currently collectively negotiate some crude oil purchasesTo date the one effort at a joint settlement uniting not just state-run
however private refiners led to an offer that secured supply of Iranian oil at a deep discount rate
With regional fuel and gasoil costs rising to a record high amid the nation's worst power crisis in years, the country wishes to redouble
its efforts to buy wisely.India's trade deficit in September surged to a record $22.6 billion, its greatest in at least 14 years, driven by
pricey imports.Mr Kapoor stated the Organisation of the Petroleum Exporting Countries (OPEC) and its allies, together referred to as OPEC+,
should raise production to bring down worldwide oil prices
OPEC+ needs to realise that this is not the best method, they should step up production
If the demand is going up and you are not increasing production, you are attempting to develop a gap, he stated
Due to this, rates are going up which's unfair, the Secretary added.OPEC+ manufacturers just recently accepted adhere to a strategy to
increase November output by 400,000 barrels each day (bpd) as it seeks to phase out output curbs of 5.8 million bpd over time.Mr Kapoor
stated increasing oil prices would prompt oil customers to seriously begin thinking of moving to other forms or reduce their demand for
These sort of costs are not sustainable
India is currently reducing the share of OPEC oil in its unrefined mix as refiners, that have actually invested billions of dollars in
refinery upgrades, are tapping cheaper oil
High oil costs are spurring investment in upstream activities, that could lead to higher production from regions besides the Gulf, Mr Kapoor
