Oil minister Dharmendra Pradhan says the government believes that $55 to $60 a barrel is a reasonable price level for now.
I think our supplying friends have noticed the high prices pinching our economy, said oil minister, Dharmendra Pradhan,
India, the world’s third-largest oil consumer, expects a “responsible” approach from its suppliers as speculation mounts over whether OPEC and its allies will reach a deal to boost output at a meeting in Vienna this week.
“High prices are pinching our economy, pinching our country,” Pradhan said. “I think our supplying friends have taken notice of that.” India believes that $55 to $60 a barrel is a reasonable price level for now, he said. Brent crude, the benchmark for more than half the world’s oil, was trading near $75 a barrel on Wednesday.
Separately, the South Asian country also plans to seek exemptions to continue Iranian oil imports and make payments for purchases after America decided to reimpose sanctions on the Islamic Republic.
Pradhan didn’t say if India plans cuts in Iranian purchases. The nation, which relies on imports for almost 80 percent of its oil needs, is diversified in terms of supplies, with cargoes coming from the Middle East, Latin America and the U.S., he said.
“Due to our relationship with different stakeholders, we’re confident we don’t have to face any situation of scarcity,” Pradhan said.-Bloomberg