New Delhi: Fatih Birol, the executive director of the International Energy Agency (IEA), forecasted that India’s oil import bill will likely rise in the second half of the year as a result of the Organization of the Petroleum Exporting Countries’ plan to reduce oil production. (OPEC).
India is an energy importer
“OPEC plus producers Saudi Arabia, Russia, and others resolved to reduce oil output. The second half of this year will see extremely tight markets across the board, according to the International Energy Agency’s analysis and the analysis of virtually every other major institution monitoring the oil markets, Birol added. India is an energy importer, according to the IEA executive director, and most of the oil used there is imported. Therefore, the decision by big producers to reduce oil production will immediately affect the Indian economy and its consumers.
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India expanded its discounted crude oil imports from Russia
According to Birol, as more nations start producing and exporting their own natural gas, there will be a float of liquified natural gas (LNG) on the market and downward pressure on oil prices in the upcoming years. Since the start of the Russia-Ukraine war, when the European Union began to boycott Russian goods, including oil, India has emerged as a significant player on the global oil market. On the other hand, India expanded its discounted crude oil imports from Russia and made it possible for processed oil, such as diesel and jet fuel, to enter European countries through a backdoor. The oil import jumped by a whopping 33 times more than a year earlier, according to a report released in January.
India is importing crude at a lower discounted price than the others
The chief official of the IEA responded that it is a valid step and that India is adhering to international trade and financing regulations. “India is importing crude at a lower discounted price than the others, and India is benefitting from doing this in a transparent manner. This is unquestionably a necessary step,” he continued.
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