Oil prices are on the rise, and Puri has urged the OPEC chairman to inject a sense of affordability into the marketOil prices are on the rise, and Puri has urged the OPEC chairman to inject a sense of affordability into the market
Oil prices are on the rise, and Puri has urged the OPEC chairman to inject a sense of affordability into the market
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Oct. 3rd, New Delhi: Petroleum Minister Hardeep Singh Puri has called for a return to realism and reasonable prices in the oil markets after OPEC and OPEC+ cut 4.96 million barrels per day from the market in 2022, driving Brent prices from $72 per barrel in June to $97 per barrel in September 2023.


During his meeting with OPEC Secretary General Haitham Al-Ghais on the sidelines of the ongoing annual Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) 2023, Puri urged OPEC to recognise the gravity of the current economic situation and called upon him to use his office to imbue a sense of pragmatism, balance, and affordability in the oil markets.

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In the course of the meeting, the Petroleum Minister brought up the fact that the recent 34% increase in the price of crude oil can be directly attributed to the production cuts carried out by OPEC (10) and OPEC+ countries beginning in August 2022.

He emphasised that these reductions were obtained despite rising energy consumption.

There will be serious stresses on the capacity of most oil-importing consuming nations when Brent crude oil prices increase from $72 per barrel in June to $97 per barrel in September 2023.

During his meeting with the OPEC chief, Puri emphasised that India’s economy had been effectively cushioned from spiralling energy prices despite the geopolitical crisis of 2022, which had added to existing inflationary pressures and created a real risk of recession in large parts of the world.

A hundred million people, he said, have been forced to return to using dirtier fuels like coal and firewood in the last 18 months.

A self-fulfilling prophecy, the global economic turbulence of 2008 left many people, including Puri, wondering whether anything akin to that would happen again.

Initial Brent price increases from $103.60/bbl in January 2008 to $134.3/bbl in July 2008 hastened the global economic catastrophe, which in turn led to the destruction of demand and very low oil prices.

He argued for a more equitable distribution of energy resources worldwide by limiting the rise in crude oil prices beyond what consuming nations can afford.

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