India has reemphasized its appeal to OPEC to boost oil production from April of the current fiscal year, as the alliance meets this week to review future actions regarding oil prices.
Tarun Kapoor, secretary at India’s Ministry of Petroleum and Natural Gas, said that “Artificial cuts to keep the price going up is not something we support.” He made this statement in discussion at the opening ceremony of India’s energy center in Moscow.
One of the biggest buyers of the producer group’s crude has urged the Organization of Exporting Petroleum Countries and its partners to pump more oil, and this is not for the first time for India.
When Saudi Arabia shocked the market with a deliberate production cut of 1 million barrels a day in February and March, Indian oil and gas minister Dharmendra Pradhan said such policy “contradiction” is “creating confusion for the consuming countries.”
Last month Pradhan said that "higher crude prices amid the OPEC+ deal was also harming the global economic recovery."
The 23-nation alliance continues to slack just over 7 million barrels of daily production is about 7% of global supply, and on Thursday will decide whether to restore a 500,000-barrel tranche in April. The Saudis will also confirm whether an extra 1 million barrels they’ve recently taken offline will return as scheduled.
Crude prices surged to pre-pandemic levels at the end of February, buoyed by stockpiles' accelerated drawdown, and U.S. production recieved impacts by severe winter storms.
While the market demands that the coalition, led by Saudi Arabia and Russia, will agree to an increase in production, the recovery pace in output continues unclear.