TIL Desk/Business/New Delhi/ India, the world’s third-biggest oil consumer, today expressed happiness at OPEC decision to raise production by 1 million barrels per day, saying the oil cartel has taken cognizance of the market and the move is a positive sign for consuming countries like India. The Organization of Petroleum Exporting Countries (OPEC) last week agreed to boost oil production after consumers from the US to India and China expressed anxiety over rising prices.
“We are happy because for the first time OPEC has taken cognizance of the market for a stability (in price),” Pradhan told. “How price will emerge is up to demand and supply fundamentals but as a consuming country, India is happy that they looked into our expectations.”
While OPEC agreed to raise production by 1 million barrels per day, in reality about 600,000 barrels a day of oil would only be added to the market, about 0.5 per cent of global supply, because several members are unable to raise output.
Pradhan, who spoke at an OPEC seminar in Vienna ahead of the meeting of oil ministers of the association on Friday, said there should be production assurance by OPEC countries. “They have decided on 1 million barrels per day of more production, certainly that is a positive sign for consuming country like India,” he said.
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